Nvidia Scandal Threatens Entire AI Industry, Not Just Jensen Huang's Company

Nvidia CEO Jensen Huang faces allegations of an extramarital affair with a Chinese businesswoman linked to Chinese intelligence, sparking a global tech industry crisis. The controversy threatens not only Nvidia but the entire AI sector, with billions in investments at risk. The woman, Alice Huang, is connected to Singapore-based cloud firm Megasphere International, suspected of smuggling Nvidia's advanced AI chips worth $7.5 billion to China, violating US export controls. Nvidia's board has appointed former US prosecutor June H. Kim to investigate whether Jensen was targeted by foreign intelligence operations. Nvidia's stock has fallen 29 percent in 24 days, losing $1.46 trillion in market value. The company has made $99 billion in investments and $279 billion in supply agreements, raising concerns about leadership succession, AI investment risks, and the industry's heavy dependence on Nvidia's technology.