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IndustryNovember 13, 20262 min read

Nvidia’s Founder Resigns Amid Alleged Chinese Spy Affair, Industry Rallies Behind Him

Jensen Huang stepped down after disclosures of relationships with a suspected Chinese intelligence asset and two Nvidia staffers, prompting mixed reactions from employees and Silicon Valley peers.

Jensen Huang announced his departure from Nvidia after reports surfaced that he had an affair with a woman alleged to be linked to China’s Ministry of State Security, as well as two additional romantic ties to company employees. The revelations shocked both the chipmaker’s workforce and the broader artificial-intelligence sector, which had relied heavily on his three-decade leadership.

Within days of the news, many staff members continued their normal routines, trusting the board to conduct a proper inquiry. Employees described Nvidia’s culture as unusually loyal, noting a turnover rate that ranks among the lowest in technology and a shared identity built around the firm’s signature green branding. Huang was widely seen as the company’s core, having avoided frequent layoffs and excessive bureaucracy.

One current worker summed up the abrupt shift, saying the company went from “superhero cape” to “Oops, I forgot my pants” in a matter of three days. A former employee suggested that a factor “more sinister” might be at play, arguing that personal affairs alone should not have forced his exit. Venture capitalist Antonio Gracias echoed this view on X, writing that a single mistake does not erase a lifetime of leadership at NVDA.

The New York Times reported an extramarital relationship between Huang and a Nvidia vice-president, while Reuters identified a second intimate link with another employee. Nvidia’s board has not yet filed formal charges, and it retained law firm Wachtell Lipton to examine the matter. China has denied any espionage connection, and former President Donald Trump said the FBI is looking into the case.

Silicon Valley peers continued to defend the founder. Venture capitalist Sarah Guo posted on X that a leader who has spent three decades building a unique firm deserves the presumption of continued stewardship. Several unnamed executives described Huang as “irreplaceable,” noting that his admission of the affair in a company-wide memo was his biggest error. An anonymous AI-sector chief warned that a new professional CEO might halt Nvidia’s aggressive support of startups, raising systemic risk for the AI market.

Following the scandal, Nvidia’s share price slipped to its lowest level in more than a year, and the company is slated to release its next quarterly earnings soon. Internally, meetings and projects press on, with teams striving to advance the initiatives Huang set in motion despite the leadership vacuum.

Sources

  1. Silicon Valley Is Still Defending Jensen Huang WIRED

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