NVIDIA's board of directors has launched an investigation; Jensen Huang may stay on but with limited power.

Nvidia’s board launched an independent investigation Sunday into CEO Jensen Huang’s acknowledged affair with former Megaspeed executive Alice Huang, who has been suspected of being a Chinese spy, while expressing confidence in him the same day. Nvidia shares fell as much as 8.8% Monday before closing down about 4.3%, wiping roughly $190 billion off its market capitalization. Georgetown professor Jason Schloetzer expects the board to keep Huang but curb his power by naming a clear No. 2, communicating succession plans more openly and adjusting board seats to signal stronger oversight. Santa Clara professor Jo-Ellen Pozner flagged Nvidia’s unusually flat management structure, with dozens of direct reports under Huang, and a “captive board” where three of 11 directors, including Huang, have served since the company’s 1993 founding. Senators Elizabeth Warren and Jim Banks demanded answers and tighter curbs on advanced AI chip exports to China, while Nvidia and Huang also face a proposed shareholder class action alleging they misled investors about the relationship; Polymarket traders put a 16% chance on Huang resigning or being ousted by year-end.