- WEB DESK
- November 13, 2026
Third affair revelation deepens Nvidia crisis as US Congress probes Huang’s China links
-
- Reuters
- November 13, 2026
WASHINGTON: The crisis surrounding former Nvidia chief executive Jensen Huang deepened on Friday after reports emerged of a third extramarital affair involving another company employee, as US lawmakers demanded answers over potential national security breaches and Chinese technology stocks fell amid fears of tighter American chip restrictions.
Reuters reported that Huang had an intimate relationship with a second Nvidia employee, citing two people familiar with the matter. The disclosure followed revelations of two other relationships, including one with Chinese businesswoman Alice Huang, whom US intelligence officials suspect of working for Beijing.
The other previously reported relationship involved Kimberly Powell, Nvidia’s vice-president of healthcare. Reuters did not identify the second employee, and attempts to contact her were unsuccessful.
Nvidia declined to comment on the latest allegation, while Huang, Powell and a representative of the company’s board did not respond to requests for comment.
Huang, 63, resigned on Thursday after mounting scrutiny of his personal relationships and concerns about possible exposure of sensitive American technology to Chinese intelligence.
The Nvidia co-founder had acknowledged being unfaithful to his wife in a November 8 statement, without identifying the individuals involved.
The company’s board has appointed Chief Financial Officer Colette Kress as interim chief executive while it searches for a permanent replacement, considering candidates from within and outside Nvidia.
The board also launched an independent investigation earlier this month, with external legal counsel, into whether Huang had been targeted by a foreign intelligence operation.
Nvidia shares fell 5.5 per cent on Thursday and have lost more than 30 per cent of their value since their early October peak.
US Congress demands answers over national security concerns
The controversy has triggered growing scrutiny in Washington, with lawmakers seeking testimony from Huang and Commerce Secretary Howard Lutnick over the protection of sensitive American technology.
US Senate Banking Committee Chairman Tim Scott sent letters on Thursday requesting that both men appear before the committee to address recent developments at Nvidia and questions surrounding US semiconductor exports to China.
Scott said the allegations raised serious concerns about national security and warned that he could issue a subpoena if Huang declined to testify voluntarily.
“The American people deserve answers,” Scott said.
Lutnick has faced criticism from lawmakers over the administration’s reluctance to add dozens of Chinese companies to a key US trade blacklist and questions about the oversight of Nvidia’s exports.
According to Reuters, senior White House officials have separately discussed whether Lutnick should remain in his position.
Meanwhile, the Republican chairs of three House committees demanded closed-door interviews with Huang and Nvidia General Counsel Tim Teter on December 1 and 2, respectively.
House Foreign Affairs Committee Chairman Brian Mast, China Select Committee Chairman John Moolenaar and Intelligence Committee Chairman Rick Crawford warned that subpoenas could follow if the executives failed to appear.
The lawmakers also sought testimony from Commerce Department Under Secretary Jeffrey Kessler at a December 3 hearing.
Justice Department says spying allegations remain unproven
Despite the political fallout, US Attorney General Todd Blanche said on Thursday that the Justice Department had not determined whether Alice Huang was working for Chinese intelligence.
Blanche confirmed that the FBI was investigating reports concerning the Chinese businesswoman but said no conclusion had been reached.
President Donald Trump also acknowledged the uncertainty when questioned about Jensen Huang’s resignation.
“The big thing is, was the woman a spy? And I don’t know if that’s been determined yet,” Trump told the Straight Shooter podcast.
The president said his assessment of Huang’s departure would depend on whether the espionage allegations were substantiated.
Trump also disclosed that he had spoken to Huang on Wednesday.
Separately, the New York Times reported that Trump had called Huang on Tuesday and encouraged him to fight to retain his position, citing two people briefed on the conversation.
Alice Huang previously served as an executive at Singapore-based Megaspeed, an official Nvidia cloud partner that enjoyed priority access to the chipmaker’s processors.
Reports linking her to suspected Chinese intelligence activities have raised questions about the company’s commercial relationships and potential exposure to restricted technology.
Beijing has denied that Alice Huang was a spy. She could not be reached for comment.
Singapore reveals separate investigation into chip transactions
Singapore’s Home Affairs Ministry disclosed on Thursday that it had investigated Alice Huang over suspected business-related offences but stressed that its inquiry did not concern espionage.
The ministry said authorities became aware of Washington’s interest in Huang and Megaspeed in June 2025, when the US Commerce Department’s Bureau of Industry and Security conducted a shipment verification check at the company.
Alice Huang, then Megaspeed’s chief executive, was present during the inspection. Singaporean police interviewed her that day and seized her passport.
The investigation concerned potential false declarations and other suspected offences involving server purchases, including transactions in which equipment was exported through Singapore to Malaysia without entering the Singapore market.
Singapore said there was insufficient evidence to establish that Alice Huang had committed an offence. However, authorities alleged that she knowingly provided inaccurate information to police and understated her involvement in Megaspeed.
Her passport was returned in February 2026, after which she left Singapore and was barred from re-entering the country.
Investigations involving Megaspeed and six individuals remain ongoing.
The ministry also complained of limited cooperation from American authorities in a related investigation involving US AI server manufacturer Super Micro Computer.
Singapore said repeated requests to the US Justice Department and FBI had produced little information or practical assistance.
Three people associated with Super Micro, including one of its co-founders, were charged by US prosecutors in March over allegations of helping smuggle billions of dollars’ worth of advanced AI chips to China through Southeast Asia and Taiwan.
Megaspeed said it took US export-control compliance seriously and had cooperated with American inspections.
Chinese AI stocks tumble over fears of tougher chip restrictions
The fallout also reached Chinese financial markets on Friday, with investors selling shares in artificial intelligence developers and technology suppliers exposed to American semiconductor restrictions.
Chinese AI model developers Z.AI and MiniMax fell sharply amid concerns that Huang’s departure could accelerate US efforts to restrict China’s access to advanced Nvidia processors.
Optical component manufacturers Zhongji Innolight and Eoptolink Technology also came under selling pressure because of their dependence on US customers.
However, domestic chipmakers gained as investors anticipated greater demand for Chinese alternatives.
Shanghai-listed Cambricon Technology rose 1.2 per cent and was on course for a weekly gain of approximately 22 per cent, its strongest performance in six months.
Hygon Information Technology was also heading towards a weekly gain of around 7 per cent.
The broader Shanghai Composite and CSI300 indices were little changed by the lunch break, reflecting contrasting performances across the technology sector.
Wu Zhou, a fund manager at Shenzhen Deyuan Investment, said investors feared Nvidia could reduce its sourcing from Chinese suppliers following Huang’s resignation.
“The market fears that after Huang’s resignation, Nvidia will reduce sourcing from Chinese suppliers,” Wu said.
He also cautioned that Washington could tighten restrictions on Chinese companies renting advanced computing capacity through overseas cloud providers.
Huang’s departure raises uncertainty over US-China technology trade
The controversy has intensified concerns that Huang’s departure could weaken opposition in Washington to tougher semiconductor export controls.
The former Nvidia chief had been among the most influential advocates of maintaining commercial access to China, arguing against sweeping restrictions on advanced chip sales.
US House Speaker Mike Johnson said on Thursday that support was growing in Congress for additional restrictions on semiconductor exports to China.
Research firm Gavekal Dragonomics warned that the scandal could make it increasingly difficult for Chinese AI developers to access the computing power required for advanced models.
Morningstar senior equity analyst Chelsey Tam similarly cautioned that further restrictions would negatively affect companies developing large language models.
Chinese technology companies have reportedly begun exploring opportunities to rent Nvidia-powered computing infrastructure outside China as uncertainty grows over future access to advanced processors.
Washington is also considering restrictions on imports of new Chinese optical transceivers on national security grounds, potentially affecting suppliers including Zhongji Innolight and Eoptolink.
Huang’s departure marks a major leadership change for Nvidia, whose processors and financing arrangements have helped fuel the global artificial intelligence boom.
With congressional scrutiny intensifying, investigations continuing and questions emerging over the company’s future leadership, the consequences now extend beyond Nvidia to the broader competition between Washington and Beijing over advanced technology.
