Nvidia CEO Jensen Huang Loses $7.4 Billion Amid Chinese Spy Scandal, Drops To 10th Spot On Forbes Rich List

New Delhi: Nvidia CEO Jensen Huang lost $7.4 billion (approximately Rs 66,000 crore) in wealth within just 30 minutes of trading on Monday, November 9, following a sharp decline in the company's share price amid an investigation into his alleged links with a suspected Chinese intelligence operative.

The sudden decline pushed Huang down two positions, from eighth to tenth, on Forbes' real-time billionaire rankings. His net worth fell from $162.2 billion to approximately $154.7 billion, according to reports.

Nvidia shares opened more than 7% lower, briefly wiping out $10.3 billion from Huang's fortune and pushing him outside the top 10 richest people in the world. The stock later recovered some of its losses but remained under pressure during the trading session.

The decline also affected Nvidia's market valuation, which had previously stood at around $4.5 trillion. Huang's ranking subsequently placed him behind Berkshire Hathaway chairman Warren Buffett and Oracle co-founder Larry Ellison.

What Triggered The Investigation?

The controversy centres on Huang's reported relationship with Alice Huang, a Chinese citizen who US intelligence agencies allegedly suspected of gathering information for Beijing.

According to reports, US intelligence officials had identified a close relationship between the Nvidia chief and Alice Huang, who was reportedly recruited by China's top intelligence agency to collect information for its Ministry of State Security.

Alice Huang has also been linked to Singapore-based Megaspeed, a cloud computing and AI infrastructure company that has business ties with Nvidia. The company reportedly came under scrutiny over its possible role in China's access to advanced Nvidia chips.

The two were reportedly photographed together at a bar in June 2024. Alice Huang has also been associated with executives in the artificial intelligence chip industry.

The allegations have raised questions about potential national security implications, given Nvidia's position as a leading supplier of advanced chips used in artificial intelligence development. However, the claims concerning the alleged intelligence operation have not been independently established.

Jensen Huang Admits To Affair, Nvidia Launches Probe

The controversy intensified after Huang acknowledged being unfaithful to his wife, Lori Huang, in a message to Nvidia employees on Sunday, November 8.

He apologised for his actions, acknowledging that they had hurt his wife and children. He also expressed support for the company's investigation and said he was committed to regaining the trust of the board, employees, partners and shareholders.

Following the developments, Nvidia's board announced an independent investigation into reports that Huang had been the target of a foreign intelligence operation.

The investigation will be overseen by a committee of independent directors, assisted by external legal counsel. The board said it would examine all available information but maintained that it had no reason to believe that either national security or Nvidia's confidential company information had been compromised.

Huang continues to serve as Nvidia's CEO, with the company maintaining that the investigation will not affect its operations.

The developments have also brought renewed attention to Nvidia's corporate governance and the potential implications of the allegations for its business relationships and international operations.