From The Verge · Elizabeth Lopatto · · 3m
Huang's fall opens Nvidia to far bigger trouble
Jensen Huang's resignation over affairs masks a deeper crisis: allegations of chip smuggling to China that could implicate the company, the government, and Trump.
In brief
Jensen Huang's resignation over affairs masks a deeper crisis: allegations of chip smuggling to China that could implicate the company, the government, and Trump. Nvidia CEO Jensen Huang resigned after affairs surfaced, but the real scandal involves alleged chip smuggling to China through shell companies, implicating…
Huang seemed untouchable
Jensen Huang built himself indispensably into Nvidia's center and had no succession plan. He was the only CEO Nvidia has ever had, making him appear bulletproof to scandal.
Two stories, one day
On Wednesday, reports emerged that Huang had an affair with subordinate Kimberly Powell and that the board was meeting to consider his ouster. Thursday morning, Nvidia announced Huang had resigned.
The affair is not the real story
The tech industry ignores executive affairs routinely. The second affair appears to be a pretext for action rooted in something far worse: allegations that Huang was honeypotted by a Chinese spy.
Megaspeed's suspicious operations
Megaspeed was Nvidia's largest Southeast Asian buyer. The Straits Times found its Singapore office dark and empty, with a tenant saying it was always dark. Its sole director, Tan Yong Pong, appears to have vanished.
“It is always dark for as long as it has been here. I hardly see anyone visiting or in the office.”
Nvidia's China market claim questioned
Huang claimed in May that Nvidia has zero percent market share in China due to US export controls.
Alice Huang's Beijing connection
Alice Huang, the Megaspeed executive who had an affair with Jensen Huang, has surfaced in Beijing. She is barred from Singapore for giving police inaccurate information and reportedly invested in Chinese AI company DeepSeek.
Super Micro's alleged chip fraud
Super Micro, run by Charles Liang, a friend of Huang, allegedly defrauded the US through a Thailand-based front company called OBON.
More shell companies emerge
New Matrix is another barely-existent company approved as an Nvidia buyer.According to the New York Times, several approved companies have ties to firms blacklisted by the US government or work as military contractors in China.
Nvidia halted a smuggling investigation
Nvidia reportedly intervened in a two thousand twenty-five Commerce Department investigation of Megaspeed suspected of smuggling Nvidia chips, halting the investigation. Commerce Secretary Howard Lutnick has become the fall guy.
Trump knew about the spy girlfriend
President Donald Trump was informed about Huang's alleged Chinese spy girlfriend in two thousand twenty-five and apparently did nothing. Nvidia has reportedly donated twenty five million dollars to Trump's planned ballroom.
Huang's security covered up the affair
When someone took a video of Powell and Huang being affectionate in March, Huang's security had nondisclosure agreements ready. CNBC reports rumors of their affair have circulated for years within the company.
Warren and Democrats poised to investigate
Come January, Elizabeth Warren will chair the Senate Banking Committee and can send subpoenas. Democrats control both chambers and their voters have given them a mandate to root out corruption. Nvidia looks vulnerable.
The key point
Nvidia CEO Jensen Huang resigned after affairs surfaced, but the real scandal involves alleged chip smuggling to China through shell companies, implicating government officials and raising questions about Trump's knowledge.
