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San Francisco/New Delhi: Nvidia, the leading American chip manufacturer that rules the world of Artificial Intelligence (AI), is currently facing the biggest leadership crisis in its history. The biggest threat so far is looming on the chair of the company’s co-founder and Chief Executive Officer (CEO) Jensen Huang. According to international media reports and latest revelations by the Wall Street Journal (WSJ), Nvidia’s Board of Directors is preparing to remove Huang from the post of CEO. The reason for this whole earthquake is said to be Jensen Huang’s two extramarital affairs and the direct connection of one of them with the suspected Chinese espionage network. As soon as this news came out, not only there was a stir in America’s Silicon Valley, but there was a huge fall in Nvidia’s shares on Wall Street.
This entire controversy started when the leading American newspaper The New York Times claimed in one of its investigative reports that 63-year-old Jensen Huang had close relations with Alice Huang, a former top executive of a Singapore-based company. According to US intelligence agencies, Chinese national Alice Huang was recruited as a spy by China’s Ministry of State Security. It is alleged that Alice Huang took advantage of her closeness to Jensen Huang to send sensitive information directly to Beijing and helped Chinese companies get shipments of Nvidia’s advanced AI chips despite sanctions. However, China’s Foreign Ministry has completely rejected these spying allegations, calling it a fabricated story fabricated by America and a conspiracy to defame China.
After the matter gained momentum, on Sunday, November 8, 2026, Jensen Huang sent an internal email (memo) to Nvidia employees, admitting infidelity to his wife Lori Mills Huang. In his message, Huang apologized to the family and company employees and took full moral responsibility, but he remained silent on the allegations of espionage. The company had not yet recovered from this first shock when another shocking revelation came to light on Wednesday. According to reports, Jensen Huang also had an affair with a senior female executive at Nvidia who reported directly to him. Violations of the company’s internal policies and alleged attempts to conceal the matter have broken the patience of the Board of Directors, after which the script of his departure has started being written.
This high-profile scandal has now intensified the stir in the corridors related to America’s national security. The House Select Committee on China of the US House of Representatives has summoned Jensen Huang to give a closed-door briefing and warned that if he does not appear, a subpoena can be issued against him. Apart from this, the Federal Bureau of Investigation (FBI) is also deeply investigating this entire episode. Interestingly, US President Donald Trump has defended Huang amid this controversy, calling him an honorable person. Trump says that Huang had no idea that the woman in question was a suspected spy and that she has done great work for the American economy and AI sector.
The direct impact of the leadership crisis and questions arising on corporate governance is being seen on the stock market. Nvidia shares fell nearly 8 percent in after-hours trading after the Wall Street Journal report. Ever since the board started investigating the matter through independent law firm ‘Wachtell, Lipton, Rosen & Katz’, Nvidia’s market capitalization has fallen by a massive $600 billion in just a few days. Not only this, investors have also filed a class-action lawsuit against the company and Huang, accusing them of defrauding shareholders by hiding significant risks related to the company’s business and national security.
The biggest question facing tech analysts is that if the board decides to fire Jensen Huang, who will take charge of the world’s most valuable chip company. Huang founded Nvidia in 1993 and has had direct control over every major decision of the company for the past three decades. Dozens of senior executives within the company report directly to him, but he has no clear succession plan in place. The Indian IT sector, data center operators and global AI startups are also keeping an eye on this emergency meeting of the Nvidia board, as any sudden change in leadership could affect the AI chip supply chain and future projects.