Nvidia Chief Jensen Huang Faces Congressional Testimony Amid Espionage Scandal

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Jensen Huang has agreed to testify behind closed doors before the US Congress following allegations involving a woman suspected of spying for China and claims of interference in chip export controls.

Jensen Huang, who resigned as chief executive of Nvidia on Thursday, has been asked to appear before the US Congress, a Republican senator said, adding that the same request had been made to US Commerce Secretary Howard Lutnick.

"Recent information raises serious concerns about our national security and the protection of sensitive American technologies. I am requesting that Nvidia's chairman and CEO Jensen Huang and Commerce Secretary Howard Lutnick testify before the Senate Banking Committee," its chairman, Tim Scott, said on X.

Huang, one of the key figures behind the artificial intelligence revolution, stepped down from the leadership of Nvidia, the company he founded, following a scandal involving alleged extramarital relationships, including one with a woman accused of spying for China.

The board of the world's largest AI chipmaker announced that Huang was resigning with immediate effect as chairman, chief executive and a member of the board, without providing a reason for his departure.

Nvidia's chief financial officer, Colette Kress, will serve as interim chief executive until the board appoints a permanent successor.

Nvidia's leadership crisis rattles markets

The sudden departure of Nvidia's powerful chief executive has implications beyond the future of the company itself, which has become a major investor in Silicon Valley.

Using its enormous profits to finance the construction of data centres for its customers and support numerous start-ups, the group has earned the nickname "the central bank of AI", although it has also faced criticism for fuelling a speculative bubble.

The market reaction was immediate. Nvidia shares, which had already lost around a quarter of their value over the previous month amid turmoil in the technology sector, plunged 13% at the opening of Wall Street trading before recovering some ground to close down 4.3%.

Huang's departure could also reignite trade tensions between Beijing and Washington. He had campaigned against restrictions on AI development, defended open AI models, including Chinese ones, and advocated easing restrictions on chip exports.

Huang agrees to testify before Congress

Huang has already agreed to testify behind closed doors before Congress before 26 November, ahead of Thanksgiving, Republican Congressman Brian Mast, chairman of the House Foreign Affairs Committee, announced.

US Commerce Secretary Howard Lutnick has also become embroiled in the controversy. According to news website Axios, Lutnick intervened on three occasions to prevent action being taken against companies allegedly offering Nvidia chips to China.

One of those companies was Megaspeed, whose executive team includes Alice Huang, the woman with whom Jensen Huang allegedly had an extramarital relationship and who is suspected of spying for China.

Axios also reported that the Commerce Secretary had been informed by US intelligence agencies about Huang's relationship with a woman suspected of being a Chinese spy, but failed to act on chip export controls despite pressure from the administration and President Donald Trump.

"Secretary Lutnick proactively volunteered to appear before the committee with jurisdiction over banking to answer its questions," Kristen Eichamer, a spokesperson for Lutnick, told NBC News.

Who could replace Huang?

On Wednesday, just hours before Nvidia's board meeting, The New York Times reported that Huang had also had an alleged extramarital relationship with a subordinate at the company, Kimberly Powell.

On Thursday, Reuters reported another alleged relationship with a different female employee.

Trump, who had appointed Huang as an informal adviser on AI, has repeatedly expressed support for the former Nvidia chief since the scandal emerged.

"I spoke to him yesterday. He's going through hell. He feels mostly bad about his wife and family," Trump told ESPN's Stephen Smith on Thursday, adding that he believed Huang "will land on his feet".

"Was this woman a spy? It hasn't been confirmed yet," Trump added, noting that if the allegation were proven, Huang's departure from Nvidia would be justified.

The US president also suggested on social media that Apple chief executive Tim Cook should take over at Nvidia.

"Now that Nvidia CEO Jensen Huang, who has done a fantastic job, has resigned, there is only one man who can take his place: Tim Cook of Apple," Trump wrote. "A legend replaces a legend!"

Other names mentioned as possible successors include Nvidia executive Ian Buck, AMD chief executive Lisa Su and former Nvidia executive Rene Haas, who now leads British technology company Arm.

Source: CNA