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Silicon Valley rocked as Nvidia launches probe into CEO Jensen Huang’s alleged “honey-trap” affair Santa Clara, CA — Nvidia, the $4.5 trillion chip-maker powering the current artificial-intelligence boom, has opened an independent investigation after CEO and co-founder Jensen Huang admitted to an extramarital relationship with business executive Alice Huang, whom U.S. intelligence officials suspect is linked to Chinese espionage. Key points • Nvidia’s board says there is “no evidence so far” that trade secrets or national-security data were compromised, but has hired outside counsel to review the matter. • Jensen Huang, 63, issued a company-wide apology, calling the affair “a personal failing” and pledging full cooperation with investigators. • Shares slid nearly 6 percent in early Monday trading, erasing over $330 billion in market value as investors weighed potential leadership turmoil and export-control fallout. • Lawmakers on three House committees have summoned Huang to testify on safeguards preventing foreign access to advanced AI chips used by the Pentagon and major cloud providers. Why it matters for AI and geopolitics Nvidia’s H-series GPUs underpin everything from ChatGPT to classified military projects. Any breach could hand Beijing critical insight into chip architectures the U.S. already restricts for export. The inquiry arrives as Washington and Beijing spar over semiconductor supremacy and as the 2026 election cycle spotlights tech security. Possible scenarios investors are watching 1. Clean bill of health: Investigators find no data leaks; Huang keeps his post, and the stock rebounds. 2. Governance shake-up: Board imposes oversight measures or appoints a co-CEO to reassure regulators. 3. Worst-case breach: Evidence surfaces of IP transfer, triggering federal probes, export freezes, and a potential leadership exit. Market reaction • Nvidia (NVDA) opened at $645, down from Friday’s $687 close. • Rivals AMD and Intel gained 2 percent as traders rotated into perceived safer AI chip plays. • Options volatility on NVDA spiked to its highest level since last year’s earnings run-up. What’s next The board’s report is expected within weeks. Meanwhile, the Commerce Department is said to be reviewing existing licenses for Nvidia’s H200 series, a move that could tighten chip exports to Chinese cloud firms if security gaps emerge. Capitol Hill hearings are slated for later this month. Bottom line Nvidia’s meteoric rise has made Jensen Huang the face of the AI era. Whether he can navigate a personal scandal with geopolitical overtones may determine not just the company’s valuation, but how the West secures the silicon driving its digital future.