Reuters revealed that Jensen Huang, former CEO of Nvidia, has had an additional extramarital relationship with a company employee beyond the two previously reported cases. Huang resigned amid heavy pressure from the scandal, causing Nvidia's market value to plunge over $550 billion in just five days. Meanwhile, U.S. politicians have demanded he explain to Congress regarding his relationship with a woman suspected of being a Chinese spy.
Reuters reported that Jensen Huang, former CEO of Nvidia, had an affair with a second female employee, according to two sources familiar with the matter. Reuters did not disclose the woman's name and was unable to obtain her comment.
This disclosure follows reports of two other extramarital affairs that led to Huang's resignation last Thursday. One involved Alice Huang, suspected by U.S. intelligence of being a Chinese spy, and the other involved Kimberly Powell, Nvidia's vice president of healthcare business.
Huang, 63, who has been married to Lori Huang for 40 years, admitted on 8 Nov 2023 that he had been unfaithful after reports of his relationship with Alice Huang, although he did not name her directly.
The case has also subjected Nvidia to pressure from U.S. politicians. Senators Elizabeth Warren and Chris Coons, along with Democrats on the House Foreign Affairs Committee, have called for Huang to testify before Congress about relationships that may pose national security risks.
Alice Huang, unrelated to Jensen Huang, formerly an executive at Megaspeed in Singapore, is suspected of working for Chinese intelligence, according to The New York Times. China denies these allegations as slander. Meanwhile, Todd Blanche, Acting U.S. Attorney General, stated the Department of Justice has not concluded whether Alice Huang was involved in espionage for China.
Earlier, Nvidia's board launched an investigation by independent directors and outside legal counsel to determine if Huang was targeted by foreign intelligence operations. The company initially expressed continued confidence in him, stating there was no reason to believe Nvidia’s confidential information or national security had been compromised but would review all available information.
Reports indicate that Huang’s relationship with the second female employee, a senior Nvidia executive who reported directly to him, raised growing concern among staff after the first case was revealed. While most employees initially did not react strongly, news of an affair with an internal executive led to criticism deeming the matter highly inappropriate.
Nvidia appointed Colette Kress, Chief Financial Officer, as interim CEO and began the process of recruiting a new CEO, considering both internal and external candidates.
Huang’s resignation has shaken the artificial intelligence industry, as he was a key figure driving Nvidia’s growth. Nvidia produces high-performance chips heavily relied upon by AI developers worldwide. The company also leverages its strong financial position to support cloud companies and AI labs through financing agreements enabling customers to acquire chips.
Nvidia's shares fell 5.5% on Thursday, losing about $550 billion in market value over five days, according to reports. The stock has dropped more than 30% from its peak in early October, marking the sharpest five-day decline since the company’s IPO 27 years ago.
Currently, Nvidia accounts for about 7% of the S&P 500 index, a key benchmark used by many American retirement funds, meaning the company’s stock decline could impact the savings of the general public.