Nvidia probes CEO Huang over affair with China-linked executive

Nvidia, a leading chip company, has launched an investigation into its CEO, Jensen Huang, following revelations that he had an affair with a woman US officials claim was working for Chinese intelligence. The woman, Alice Huang - also known as Huang Le and no relation to Nvidia's founder - was allegedly funneling information to Beijing, according to US intelligence.

Huang acknowledged the affair and apologized to his family and employees, stating, "I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry."

The new development comes as President Donald Trump has been vocal in his opposition to regulating the AI industry to prevent China from gaining an advantage. The woman's relationship with Huang could have provided her with insights into Trump's AI-related thinking. Nvidia stated it initiated the independent probe "in light of recent reporting" that Huang had been the target of a foreign intelligence effort, though it did not name the country.

China dismissed the New York Times report as "groundless speculation." The issue has sparked concerns in Congress, with technology analyst Dan Ives predicting that the probe could lead to multiple inquiries and negatively impact Nvidia's stock. However, Huang is expected to retain his position as CEO for now, though he could be removed depending on the outcome of the investigation. The probe adds risk to the stock as Huang is crucial to Nvidia's global strategy and AI race against China.