Nvidia's AI dominance at risk as CEO scandal triggers investigations

Nvidia, the dominant supplier of AI chips with over 80% market share, faces a crisis after CEO Jensen Huang admitted to an affair with Alice Huang, a woman accused of being a Chinese intelligence agent, triggering investigations and a share price drop. The relationship has raised concerns about potential sanctions evasion, as Alice Huang's former employer, Megaspeed, was accused of exporting Nvidia chips to China. Jensen Huang lobbied to relax US export restrictions, and Nvidia is now under criminal investigation, with Congress demanding explanations. The scandal threatens Nvidia's sales pipeline if it must guarantee chips don't reach China, potentially disrupting the AI sector's circular financing. Investor confidence is already shaky over AI profitability, with firms like OpenAI and Anthropic facing market challenges, and Nvidia's board is investigating its CEO.