Nvidia's CEO, Jensen Huang, resigned on Thursday amid a scandal involving his extramarital affairs that raised significant national security concerns. The company has appointed Colette Kress, its current executive vice president and chief financial officer, as interim CEO. Huang's resignation followed increasing pressure after reports of his relationship with an alleged Chinese spy and another affair with an Nvidia employee who reports directly to him.
The Nvidia board of directors convened to discuss Huang's future following revelations about his relationship with a former executive from Megaspeed International, a company suspected of having ties to the Chinese government. The board also introduced its first-ever chairman, Harvey C. Jones, an entrepreneur and venture investor. As a result of the unfolding scandal, Nvidia's shares dropped by 10% in premarket trading.
Huang faced mounting calls for his resignation after allegations surfaced that his extramarital affairs posed risks to national security. Media outlets reported that the woman he allegedly had an affair with, Alice Huang (also known as Huang Le), had been feeding information to Beijing, raising serious concerns among U.S. intelligence agencies. Following these revelations, U.S. President Donald Trump announced on Sunday that the FBI was investigating the matter. Nvidia stated that it had “no reason to believe” that either national security or its proprietary secrets were compromised but would thoroughly examine all available information.
Megaspeed International, headquartered in Singapore, released a statement emphasizing its commitment to comply with U.S. export control laws. However, details surrounding Huang’s alleged affair with the former Megaspeed executive remain unclear. Megaspeed stated that it had cooperated with the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) regarding the enforcement of national security restrictions on technology exports, and it is ready to fully cooperate with any other relevant U.S. authority.
Last year, Megaspeed faced accusations of illicitly shipping advanced Nvidia computer chips into China, but it later stated there was “no evidence” to support such claims. The financials of Megaspeed have also garnered attention, as its total assets reportedly increased nearly 90-fold from late 2023 to 2024, reaching almost US$3 billion. The company’s revenue skyrocketed, climbing to over US$294 million in 2024 from none the previous year.
Both Nvidia and Megaspeed have indicated readiness for scrutiny and inquiries into their operations amid these serious allegations. Megaspeed has hired a U.S. law firm to conduct a “comprehensive census” of its computer chips and verify its export controls. Megaspeed expressed its commitment to demonstrating its responsibility and transparency in adherence to applicable U.S. laws.
China has denied any involvement in attempts to entrap Huang, who leads one of the world's most valuable companies. Nvidia has become a key player in producing chips vital for artificial intelligence and has lobbied the U.S. government to ease restrictions on chip sales to China. Earlier this year, Huang successfully obtained approval from Trump to sell Nvidia's new H200 chips to China.
This ongoing saga raises substantial questions about corporate governance, national security, and the implications of personal conduct within influential positions. As developments continue, both Nvidia and Megaspeed remain under scrutiny from government and industry observers.
