Jensen Huang admits affair with alleged Chinese spy, Nvidia probes

The affair revelation lands as Nvidia is trying to preserve access to China's AI chip market. Historically a major market for Nvidia, China has shrunk under strict U.S. export controls and Beijing's push for domestic alternatives. In the three months ended July 26, Nvidia recorded $7.9 billion in revenue from customers headquartered in China, roughly 8% of total revenue.

Huang has lobbied Washington to expand access, and some efforts succeeded: after repeated meetings with President Donald Trump and administration officials last year, the government reversed restrictions on Nvidia's H20 chips and allowed exports of its more powerful H200 processors. The new allegations could complicate that lobbying, as they open scrutiny of Nvidia's business relationships and could taint assurances that it can prevent sensitive technology from reaching unauthorized customers.

The timing is delicate. Reuters reported last week that about 600,000 H200 chips are being held in Hong Kong, awaiting shipment to mainland China, while Beijing pushes AI companies to buy from Chinese suppliers. Even if Nvidia's investigation clears Huang of sharing secrets, the question is whether he can convince Washington that Nvidia can still responsibly do business with China.