Nvidia CEO faces congressional probe after affair with suspected spy

Nvidia has become the center of a political storm as its chief executive, Jensen Huang, faces new scrutiny from lawmakers and the public.

Huang admitted on Sunday that he had an extramarital affair with a businesswoman named Alice Huang. Intelligence agencies identify Alice Huang as a Chinese spy. She is affiliated with Megaspeed, an Nvidia customer that has been accused of helping restricted Chinese companies buy AI chips.

In a note to staff, Huang apologized for being unfaithful to his wife. He stated that the company's board is investigating any related national security concerns. The board said it has confidence in Huang, who co-founded the company in 1993 and has led it since. His net worth exceeds $150 billion.

The timing of the revelation complicates the transition of power in Washington. Democrats won sweeping majorities in the House and Senate in last week's midterm elections. They have promised more oversight of AI development than the industry has seen under Republican leadership.

Sen. Chris Coons of Delaware, who is set to chair the Senate Foreign Relations Committee, wrote on X on Saturday that Congress will investigate and get answers. This followed a New York Times report on Friday that detailed the allegations.

Sen. Elizabeth Warren of Massachusetts had previously pushed for answers. She said days before the election that bipartisan legislation was needed to keep advanced AI technology out of China's hands. In June, Huang declined an invitation to testify before the Senate Banking Committee.

Nvidia shares dropped 12% in the two days following the election. The decline was driven by fears that new lawmakers and ballot measures would slow the AI buildout. Huang maintains a unique position in the industry, as his company's technology trains nearly all major AI models. He also recently announced plans with Wall Street figures to raise $500 billion for infrastructure investment.

Inside Nvidia, Huang is the sole public face of the company. He has no clear second-in-command and reportedly reviews every employee's salary. He has 60 direct reports. Bernstein analyst Stacy Rasgon noted that it is unclear who would succeed him if Huang stepped back.

President Donald Trump defended Huang on Sunday, calling him an honorable guy who has done an amazing job for the country. Trump suggested that Huang probably has an excuse for the incident.

Sam Bresnick, a research fellow at the Center for Security and Emerging Technology, said Democrats will probe whether the Trump administration knew about the relationship. He noted that this is likely to be high on their list of investigations.

House Republican leaders have also requested a closed-door briefing from Huang on Chinese spying issues later this month. This indicates that pressure on the company is not limited to one party.

A company spokesperson said in a statement that the news will not slow Nvidia. The spokesperson added that Huang is committed to leading the company as CEO without interruption. One investor close to Huang told CNBC that a leave of absence is possible depending on the board's findings.