Nvidia CEO Huang had relationship with executive who reported to him, NYT reports

The story of Nvidia's founder and CEO, Jensen Huang, is one of visionary genius and technological triumph, but also of red flags and potential legal troubles. Huang's leadership has been praised by CEOs worldwide and featured in a new book, but recent events have raised serious concerns about his fiduciary duty and the board's oversight.

In October 2025, a Singapore firm, Megaspeed, purchased billions of dollars worth of Nvidia chips under suspicion of helping China evade U.S. export restrictions. Nvidia claimed a review found no evidence of diversion, but a short seller alleged "uncomfortably close ties" between Alice Huang, Megaspeed's head, and Jensen Huang. Alice Huang was reportedly believed to be a Chinese asset by U.S. intelligence.

The board's response to these allegations has been questioned. It is unclear if any director knew about Jensen Huang's personal relationship with Alice Huang or if the board discussed Megaspeed or the CEO's relationship with her. Nvidia's board has been criticized for not adequately monitoring risks central to the business, as established in the Caremark doctrine of the Delaware Chancery Court.

This doctrine states that directors have a duty to oversee risks and breach their loyalty if they fail to do so. Similar suits have been successful against other companies, including Blue Bell Creameries and Boeing, highlighting the importance of board oversight.

Nvidia's board minutes, previously obscure, are now accessible to plaintiffs' lawyers, and the risks facing the company are significant. The board must take responsibility for its oversight and avoid idolatry of its CEO, as the consequences can be severe.