China’s Nvidia Honeypot Isn’t Surprising. Jensen Huang Fell for It Anyway

Nvidia announced Tuesday it has retained the New York law firm Wachtell, Lipton, Rosen & Katz to investigate whether CEO Jensen Huang, 63, was targeted by a foreign intelligence operation. The probe centers on Huang's relationship with a woman whom U.S. officials have identified as a Chinese asset, according to CNN. The scandal has wiped more than 5% off Nvidia's share price this week and drawn demands from federal lawmakers for investigations and tighter export controls on advanced chips. The Economist published an editorial arguing Huang must resign, while Wall Street analysts are questioning whether he could be forced out given the absence of a public succession plan. Huang, who co-founded Nvidia in 1993 and built it into the world's second-most valuable company at over $4 trillion, said in a Sunday statement: "I take full responsibility for what I did and the hurt I caused, and I accept the criticism that comes with it. I am committed to protecting Nvidia and supporting America's national security." China's Ministry of Foreign Affairs spokesperson Guo Jiakun called the allegations "purely groundless speculation and an attempt to smear and malign China." President Donald Trump defended Huang on Monday, saying, "I think he's an honorable guy. He's done an amazing job for our country." Huang's personal brand — bolstered by a rags-to-riches narrative that includes washing dishes at Denny's as a teenager and enduring racist taunts in Kentucky — has made him an icon to retail and institutional investors alike. He is married to his college sweetheart Lori since 1985; their two children, Madison and Spencer, hold senior roles at Nvidia. His net worth is estimated at roughly $141 billion, making him the 13th-richest person globally per the Bloomberg Billionaires Index. Nvidia's revenue more than doubled year-on-year in its most recent fiscal quarter, underscoring its central role in the AI boom four years after ChatGPT's launch.