Reuters Reports Former Nvidia CEO Jensen Huang Had Third Affair; ‘I’m Trash,’ He Tells Associates
Summary
- Reports of a third affair involving the former CEO and his resignation have thrown Nvidia’s management risk into sharper focus.
- Questions over Megaspeed, possible Chinese smuggling of Nvidia chips, and signs that sanctions were halted are broadening the company’s policy risk.
- A growing consensus in Congress on tighter controls on semiconductor exports to China and the launch of an investigation are raising the odds of stronger export curbs on China.
Forecast Trend Report by Period
Former Nvidia CEO Jensen Huang is facing allegations that he had a third extramarital relationship. Reuters reported on Nov. 12 that it had obtained material showing Huang had an “intimate relationship” with another employee in addition to Alice Huang, a former executive at Megaspeed, and Kimberly Powell, Nvidia’s vice president for healthcare. Reuters did not identify the employee.
Bloomberg described Huang as seeming to have “given up on everything” after admitting to the affairs and deciding to resign. The account said Nvidia General Counsel Tim Teter went to Huang’s home and confronted him after the Financial Times reported on Nov. 6 that Huang and Alice Huang had a “romantic relationship.” Huang admitted it. Citing people who recently spoke with him, Bloomberg reported that Huang has been berating himself as “I’m trash” and saying, “I don’t care what happens” and “I don’t care.”
The scandal has now spread to Donald Trump’s administration. The controversy has escalated into a national security issue after it emerged that Commerce Secretary Howard Lutnick had blocked sanctions on Singapore data company Megaspeed and others. The New York Times reported that senior White House officials are discussing whether Lutnick should step down.
The Times said the Commerce Department treated Nvidia separately from other companies and routed all related matters to Deputy Commerce Secretary Jeff Kessler, Lutnick’s top deputy. A Commerce Department investigation into whether Megaspeed smuggled Nvidia chips into China was halted after Teter mentioned Kessler to investigators. Lutnick has overseen issues related to investment in the US by South Korea and Japan, and his departure could disrupt those projects.
Congress has begun a full-scale investigation. House Speaker Mike Johnson said there is growing consensus in Congress that semiconductor exports to China should be controlled. Senate Republican Leader John Thune said Congress will begin investigating allegations of ties to Chinese espionage regardless of Huang’s resignation.
Senate Democratic Leader Chuck Schumer said the Trump administration “must be held accountable” for what it did after learning of the relationship between Alice Huang and the former Nvidia CEO. CNN reported that House Foreign Affairs Committee Chairman Brian Mast, a Republican from Florida, said Huang has tentatively agreed to appear in closed-door testimony before key committees.
Those committees include not only the Foreign Affairs Committee but also the Intelligence Committee and the Select Committee on Strategic Competition Between the United States and the Chinese Communist Party. Mast also said he is prepared to issue a subpoena if Huang abruptly changes course and refuses to appear.
Lee Sang-eun, Washington correspondent, Hankyung.com, selee@hankyung.com
Korea Economic Daily
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