Nvidia CEO Jensen Huang faces board ouster push amid security and personal scandals

Nvidia chief executive Jensen Huang faces the possible end of his leadership at the chipmaking giant following revelations of extramarital affairs and growing scrutiny over US export controls. Nvidia's board of directors is preparing to oust Huang, and company shares fell in after-hours trading.

The Scandal

Nvidia's board previously launched an investigation into whether Huang was the target of a foreign intelligence effort after he admitted to an affair with Alice Huang, the founder of Singapore-based cloud computing firm Megaspeed, who is alleged to be a Chinese spy. The situation escalated after reports surfaced that Huang had a second affair with Kimberly Powell, Nvidia's vice president of health care, who reports directly to him. Megaspeed had purchased $4.8 billion in Nvidia chips over two years, and the Justice Department took over a federal investigation into the firm over suspicions of illegally sharing chips with China.

Chip Smuggling Routes

Beyond the executive crisis, the scandal has drawn renewed attention to the widespread smuggling of Nvidia's advanced graphics processing units into China despite Washington's export bans. US authorities previously busted a Texas smuggling syndicate attempting to export at least $160 million worth of H100 and H200 chips, while Northwestern Polytechnical University in China purchased at least $7.5 billion worth of H200 chips last month despite US export blacklists. Smugglers have bypassed bans by using overseas data centres in places like Malaysia and Singapore, human couriers carrying chips in luggage, dismantled parts, and front companies.

Context

Export controls on advanced semiconductors are a central tool used by Washington to slow China's development of military and commercial artificial intelligence. Nvidia's powerful graphics processors remain vital for training large AI models, creating a high-stakes global market where underground supply networks continually test government trade barriers.