Nvidia chief executive Jensen Huang has admitted being unfaithful to his wife after reports identified the woman involved as a suspected Chinese spy, prompting the company’s board to launch an independent investigation.
The disclosure came as Nvidia shares and the wider artificial intelligence sector endured a sharp sell-off, reducing the value of Huang’s stake in the chipmaker by billions of dollars.
Huang’s estimated fortune stood at just over $171 billion early last week, according to the Bloomberg Billionaires Index. It had fallen to $150.9 billion by Thursday before recovering slightly to $154.9 billion on Friday.
Nvidia shares are down 18.6 per cent over the past month. The stock was also trading about 3.5 per cent lower on platforms offering weekend prices, according to Deutsche Bank’s Jim Reid.
In a statement, Huang said: “I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry.”
He added: “To my colleagues at NVIDIA … you deserve better from me. Leading NVIDIA is the privilege of my life. My responsibility is to serve you and be worthy of your trust. I have fallen short of that responsibility.”
Huang said he would work to regain the confidence of Nvidia’s board, business partners and shareholders.
Nvidia board launches investigation
Nvidia’s directors said they had opened an independent investigation following reports that the company’s founder and chief executive had been the target of a foreign intelligence effort.
The board said it had no reason to believe that sensitive national security information or Nvidia secrets had been compromised, but would examine all available information.
The woman linked to Huang has been described in reports as a suspected Chinese spy. The Chinese government has denied involvement in the alleged plot, calling the claims “nothing but smears”.
Investors were weighing the implications ahead of trading in New York. Mr Reid said gains in Asian equities had been limited by concerns over the internal investigation involving Huang.
Nvidia is a leading supplier of processors used by artificial intelligence companies and has invested in and provided backing for firms across the sector, involving hundreds of billions of dollars.
Donald Trump said he had not spoken to Huang about the matter, but described him as “a fine person”. The US president added: “You never know what is going on.”
Prediction market Kalshi put the chances of Huang leaving Nvidia before July 27 at 25 per cent, while Jeffrey Sonnenfeld, a professor at Yale School of Management, assessed the likelihood of his resignation at 50-50.
Huang owns Nvidia’s largest single stake and his children are among the company’s employees. There is no obvious successor if he were to step down.
Nvidia’s board said it had confidence in Huang and his leadership team. Trump also backed his continued leadership, saying: “He’s done an amazing job for our country.”
