Nvidia CEO Jensen Huang has never been quiet about his belief that the U.S. should continue selling AI chips to China, rather than shutting the country off from the technology. The revelation that he had an affair with an alleged Chinese spy threatens to complicate that argument.
The Financial Times reported Friday on the relationship with Alice Huang, a former executive at Megaspeed, an Nvidia customer. Jensen Huang admitted to the affair and apologized in a memo to the company on Sunday. U.S. intelligence officials believe Alice Huang was recruited by Chinese intelligence to gather information about the CEO and influence the company’s efforts to loosen chip export restrictions.
Nvidia’s independent directors, working with outside legal counsel, are investigating the matter, and Congress is already demanding answers.
The controversy comes at a sensitive moment for Nvidia. Historically, China has been a big market for the company. It has shrunk in recent years due to strict U.S. export controls and an aggressive push by Beijing for domestic alternatives. In the three months ended July 26, Nvidia recorded $7.9 billion in revenue from customers headquartered in China, roughly 8% of total revenue.
Huang has repeatedly lobbied the U.S. government to expand access to China, and some of his persuasion tactics have been successful. Huang met repeatedly with President Donald Trump and administration officials last year; afterward, the government reversed restrictions on Nvidia’s H20 chips and allowed exports of its more powerful H200 processors.
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