Nvidia CEO Ousted: Alice Huang's Murky Business Dealings, Investigations in Singapore, and a Power Struggle Over Nvidia's Future

On Thursday, Jensen Huang lost control of Nvidia, the company whose computing chips have become the technological foundation for much of artificial intelligence. The board of directors acted on an affair that had already reached the White House. An alleged Chinese spy, a second relationship within the company, and suspicions that cutting-edge American technology had made its way to China through Singapore had put mounting pressure on the 63-year-old executive. Chief Financial Officer Colette Kress took over as interim CEO. The stock market reacted with a 14 percent plunge at the opening bell. A private life had suddenly taken on the weight of an international national security problem.

At the center of it all is Alice Huang, also known as Huang Le. Photographs show her in a pink dress, wearing sparkling heels, or holding a glass of wine. Far less is known about her actual position within a sprawling network of business interests. According to the published investigations, U.S. officials concluded that she had been recruited by Chinese intelligence agencies to influence Jensen Huang and help China gain access to Nvidia's most advanced chips. The FBI is investigating the relationship. China dismisses the espionage allegations as slander. Alice Huang has so far been unavailable for comment. When the relationship began and when it ended remains unknown.

Jensen Huang with his wife Lori, née Lori Mills. The two have been married since 1985, a total of 41 years. They met around 1980 while studying electrical engineering at Oregon State University. They have two children, Madison and Spencer, both of whom work at Nvidia.

Jensen Huang had admitted to being unfaithful to his wife and had written to the board of directors. He did not name the woman involved. On Wednesday, a second extramarital relationship with Kimberly Powell, an Nvidia executive who reported directly to him, also came to light. The two affairs put the board under considerable pressure to act. Huang, whose personal fortune Forbes estimates at more than $150 billion, had described himself just a few months earlier as a deeply boring person. His close relationship with Donald Trump, on the other hand, was plain for everyone to see. In May, he accompanied the president on a visit to Beijing. On October 8, Trump presented him with the National Medal of Science.

Trump responded to the resignation with an unusual recommendation for Huang's replacement. The president wrote that Huang "has done a fantastic job" and declared that only one man should succeed him: Tim Cook, Apple's former CEO. "A Legend replaces a Legend!" was his message. By that point, Nvidia's board had already settled on an interim arrangement. The U.S. government, however, is now dealing with a far more uncomfortable question: What information and business decisions could have been influenced through Huang's personal relationships?

Brian Mast, chairman of the House Foreign Affairs Committee, wants Huang to appear before lawmakers even after his resignation. Members of Congress had already requested a hearing on November 5. As recently as Wednesday evening, the committee was still in contact with Huang's representatives. Mast said lawmakers were demanding a prompt hearing about Huang's contacts with the Chinese businesswoman and the company's security measures against foreign espionage. If necessary, a formal subpoena would be issued. Huang had indicated that he was generally willing to testify. His departure from the company's leadership does nothing to bring the congressional investigations to an end.

Alice Huang's business career stretches from China's financial sector to Singapore. She worked for HSBC in Hong Kong and CITIC Securities. Between 2015 and 2017, she held senior positions at Shanghai Hexi Investment. Its founder, Kang Wei, was fined 400,000 yuan in 2018 for financial misconduct, while the company was fined 17.7 million yuan. There is no evidence that Huang was personally involved in those violations. In 2023, she moved into a leadership position at Megaspeed, a company originally established in 2015 as 7Road International. After it was renamed, all shares were transferred to Huang Le Limited in the British Virgin Islands.

Read also our article: The Man Who Had Trump's Ear: An Alleged Chinese Spy, Two Affairs, and the Looming Downfall of Nvidia's CEO

Alice Huang became Megaspeed's controlling shareholder. Eight months later, her name disappeared from the company's list of directors, and the shares were transferred to Tan Yong Pong, also known as James Tan. However, an employee said in May that Huang was still the real boss and continued to influence day-to-day operations. Megaspeed describes itself as a major business partner of Nvidia, and the company is also listed on Nvidia's own website. Investigators suspect that powerful American computing chips may have reached China in violation of export restrictions. Megaspeed denies any illegal shipments. On Thursday, Tan pledged to cooperate with U.S. authorities.

Singapore has now released details of its own investigation into Alice Huang. Investigators examined possible false declarations involving server purchases that were routed through Singapore to Malaysia and potentially onward to other recipients. Huang's passport was seized but returned in February. There was insufficient evidence to prosecute her. Nevertheless, authorities issued her a stern warning and barred her from reentering Singapore because they suspected she had knowingly provided false information to downplay her actual role at Megaspeed. The investigation concerned possible violations of trade regulations, explicitly not espionage. Taiwan is also investigating Huang's connections and those of the company.

The stock market showed just how costly such a loss of leadership can be. Nvidia had seen its share price rise 1,722 percent over four years. The stock reached a record high in October, then lost more than 30 percent. On Thursday, the shares initially plunged 14 percent following the resignation announcement and were still down 5.3 percent later in the day. Other technology stocks also came under pressure. The S&P 500 and the tech-heavy Nasdaq both declined. The nervousness extends far beyond a single chipmaker, since numerous companies depend on Nvidia's powerful processors.

Analyst Asa Hiken sees Nvidia facing the challenge of maintaining its leading position without the man who played such a decisive role in building it. Dan Ives considers Huang's removal from the company's leadership necessary but still believes Nvidia is technologically two to three years ahead of its closest competitor. He continues to recommend buying the stock. Nvidia itself maintains that there is currently no reason to believe that company secrets or national security have been compromised. The investigation will examine all available information. As recently as January, Huang had persuaded Trump to approve sales of Nvidia's H200 chips to China. Now American lawmakers are demanding answers about the security of that very technology. The man in the black leather jacket has lost his position as CEO. The business dealings he leaves behind remain under investigation.