The value of technology company Nvidia has decreased by trillions of dollars due to its CEO's romantic relationship with an alleged Chinese spy
One of the richest people in the world, who until now headed the company Nvidia, is facing not only the anger of his own family, but also American politicians. The reason is that Jensen Huang maintained a romantic relationship with a Chinese businesswoman who was allegedly smuggling advanced chips from the American manufacturer into her own country.
Nvidia has been among the fastest-growing companies in recent years. It stands at the forefront of the global market for artificial intelligence chips. It significantly benefits from the increased interest in this technology. Therefore, no one was surprised when last October it became the first company in the world whose market value exceeded five trillion dollars, which is an astronomical 110 trillion crowns in conversion.
The Admission Caused a Stir
Jensen Huang has been at the helm of the technology giant for more than 30 years. This sixty-three-year-old manager is one of the richest people in the world. However, his fairy-tale career has taken a heavy blow in recent days. It has been revealed that in the past he established a relationship with a woman who is suspected of espionage for China.
"I was unfaithful to my wife. It hurt my wife and our children. There is no excuse for it,"
quoted Huang ČTK.
Politicians in the United States have also begun to address the problem of enormous proportions
North Dakota Senator Kevin Cramer stated that Huang's actions represent a danger to national security.
"The risk of blackmail is so enormous that with something as sensitive as Nvidia chips, I simply think he must leave,"
Cramer told the respected Politico website.
Republican congressmen have already summoned the company's manager to a closed hearing scheduled for November 18.
Nvidia meanwhile announced that its board of directors has initiated an independent investigation.
"Although the board has no reason to believe that national security has been compromised or that Nvidia's trade secrets have been leaked, the investigation will examine all available information,"
wrote the company's top body in its statement.
Beijing, however, denied that it was trying to compromise Huang.
"The accusations about so-called Chinese espionage are unfounded. It is nothing other than an attempt to damage China's reputation,"
stated the spokesman for the Chinese Ministry of Foreign Affairs, reported ČTK.
The investigation increases pressure on the company at a time when doubts about the rapid development of artificial intelligence are growing among investors. According to claims by television station Sky News, following reports of its CEO's affair with an alleged Chinese spy, Nvidia's market value plummeted by a staggering 430 billion dollars, which is more than 9.42 trillion crowns.
Espionage Background
The woman Huang allegedly had an affair with is businesswoman Alice Huang. American intelligence services reportedly believe she was recruited by the Chinese Ministry of State Security. Huang works for the Singaporean company Megaspeed, one of Nvidia's major customers. American authorities suspect the company of circumventing export controls and smuggling advanced chips from the American manufacturer into China. This has allegedly been happening since the end of 2024, when an official from the US Department of Commerce noted suspicious circumstances during a visit to a Malaysian data center according to reports. Nvidia equipment was still packed in boxes on site, which raised questions about whether the hardware was being installed or transported elsewhere.
According to information from some media outlets, Huang's relationship with the Chinese citizen was supposed to lead to deliveries of Nvidia chips to China worth at least 7.5 billion dollars, which is approximately 157.5 billion crowns.
Singaporean authorities questioned Alice Huang last year due to suspicion. However, they released her shortly afterwards. Several question marks remain unresolved. For example, it is still not clear what information Alice Huang allegedly passed to Beijing, how she obtained it, or whether Huang knew about the intelligence services' assessment of her activities. The report further states that American officials did not provide Nvidia's CEO with a so-called defensive briefing, which could have alerted the executive to the alleged intelligence operation.
Love in the workplace may not pay off
The romance with an alleged Chinese spy is moreover probably not the only "notch" of the top manager of Nvidia. Only now are findings coming to light according to which Huang also had an affair with company manager Kimberly Powell. The The New York Times website reported that Huang was filmed at the company's March conference in San Jose, California, "behaving affectionately with each other at the hotel". Nvidia's code of conduct states that company employees should avoid situations in which their actions could create a conflict, including personal relationships.
Huang's case is not the only one where a company manager has been criticized for relationships with other women. Last year, the CEO of American software company Astronomer, Andy Byron, came under public scrutiny. He resigned from his position after footage from a Coldplay concert appeared on the internet. The camera captured him on the big screen in the audience embracing the company's HR director, Kristin Cabot.
Seven years ago, Steve Easterbrook, a top manager at the McDonald's fast-food chain, was fired due to a relationship with a subordinate. He was quite a womanizer. It was later discovered that he had concealed other relationships he had with some women at the company.
Sources: original text, ČTK, The New York Times, Politico, Sky News
