Nvidia Spy Scandal: Jensen Huang Misled Executives, Sources Say
Former Nvidia CEO Jensen Huang told senior executives his dealings with Alice Huang were routine business, two people familiar with the matter said. Nvidia shares have fallen 12.75% this week, and Congress has summoned Huang to a December 1 hearing.
Former Nvidia CEO Jensen Huang misled senior executives about his relationship with Chinese businesswoman Alice Huang, telling them in October 2026 messages that their dealings were routine business, according to two people familiar with the matter. The Nvidia spy scandal that Jensen Huang's resignation set off has now wiped about $573 billion from the chipmaker's value this week.
The two people said internal correspondence shows Huang described their interactions as standard dealings with customers. He wrote to general counsel Tim Teter and chief marketing officer Alison Wagonfeld, and called his engagement with her company, Megaspeed International, routine.
Questions raised twice
Huang addressed questions about the relationship twice, the sources said: in autumn 2025 and again in October 2026. Press inquiries had brought the matter to the attention of some Nvidia leaders both times. He called the interactions appropriate on each occasion.
In 2025 he did not describe the relationship as an affair, the people said. After a New York Times article that year highlighted their public meetings, Huang discussed possible legal action against the newspaper. Neither he nor Nvidia sued, and a Times spokesperson said it received no legal demand.
Alice Huang, a former senior executive at Megaspeed, an Nvidia customer, was under US investigation over suspicions she may have spied for China. She is not related to Jensen Huang. Beijing has denied she is a spy, and China has called the allegations baseless.
Resignation and market fallout
The Nvidia board's independent members announced on November 10 that they had hired the law firm Wachtell, Lipton, Rosen & Katz to run an independent investigation. Huang resigned on Thursday. The board named longtime chief financial officer Colette Kress interim CEO.
Nvidia's shares had fallen 12.75% since the start of the week as of Friday's close. The stock is down more than 30% from its October 6 closing high, a loss of more than $1.8 trillion in market value. Nvidia makes up about 6% of the S&P 500, so the slide reaches many retirement and investment accounts.
Nvidia reports third-quarter earnings on Tuesday, when Kress is likely to face investor questions.
Washington and Singapore
Huang has been called to testify at a closed-door congressional hearing on December 1. Lawmakers have said they will subpoena him if he does not agree voluntarily. Commerce Secretary Howard Lutnick has agreed to testify next month before the Senate Banking Committee.
Singapore's Ministry of Home Affairs said its police and customs authorities opened investigations into Megaspeed and Alice Huang. Super Micro Computer said Megaspeed "is not, and has never been, a Supermicro customer." Huang, Nvidia and Super Micro have not been charged with wrongdoing.
Senior US officials said President Donald Trump does not plan to raise the matter with Chinese leader Xi Jinping at the Asia-Pacific Economic Cooperation summit in Shenzhen on November 18 and 19. "The situation with Nvidia should not really have any bearing on the trip," one official said.
