Nvidia's Jensen Huang faces investigation; succession uncertainty clouds AI future

Nvidia founder Jensen Huang is under investigation over an alleged relationship with a Chinese spy and potential disclosure of confidential intellectual property, threatening his leadership and the AI industry. The board is reportedly considering ousting him, and shares fell about 8% on the news. Huang created Nvidia three decades ago, and no clear successor is ready, with his children's roles unclear and other executives seen as unlikely replacements. Former White House AI advisor Carmem Domingues says all AI companies depend on Nvidia, making the ecosystem intertwined, and compares the situation to the 2008 financial crisis, suggesting Huang may be "too big to fail." The AI bubble was already showing signs of bursting before this news, with data centres struggling on infrastructure and power grids, and many startup valuations detached from fundamentals. In China, companies like Xynova see this as reinforcing the need for independence from American chips, though Domingues says the investigation will not change the US-China AI race rhetoric.