Nvidia CEO Jensen Huang Drops Out of Billionaires’ Top 10 Amid Affair Scandal

News in Brief:

— Nvidia CEO Jensen Huang has dropped to 12th on Forbes’ billionaire rankings amid allegations of an affair and links to a Chinese espionage probe.

— The controversy has added pressure on Nvidia as questions emerge over possible violations of US restrictions on AI chip sales to China.

Nvidia CEO Jensen Huang has fallen out of the world's 10 richest people amid allegations of an affair with a woman reportedly linked to Chinese intelligence activities.

According to Forbes' Real-Time Billionaires list, Huang ranked 12th on Wednesday after losing $8.3 billion in net worth compared with the previous day. A Business Insider report also claimed that his fortune fell by $6.5 billion on Monday as news of the alleged affair emerged.

Forbes calculates Huang's net worth based largely on his assets, including his Nvidia shares. Consequently, fluctuations in the chipmaker's market value have a direct impact on his position among the world's wealthiest individuals.

Nvidia Faces Fresh Scrutiny Over China Chip Sales

The controversy has reportedly weighed on Nvidia's shares, with the company's market value falling by about 4% by the close of trading on Monday. Subsequent reports of a Federal Bureau of Investigation (FBI) probe into the allegations have added to the pressure surrounding the chipmaker.

According to reports, Nvidia's board announced on Sunday that it was examining possible links between Huang and a foreign intelligence operation. Huang later apologised to his employees, reportedly admitting he was unfaithful to his wife, Lori Huang, whom he has been married to for more than 40 years. The couple have two children.

A New York Times report alleged that Alice Huang, the woman reportedly involved in the affair, used her data centre company to acquire artificial intelligence (AI) chips for China, potentially circumventing US export control restrictions.

The allegations have raised fresh concerns about enforcing US restrictions on advanced semiconductor exports to China and the possibility of sensitive technology reaching restricted markets through third-party companies.

Although Nvidia is barred from selling certain high-end AI chips directly to China, it can supply customers in other markets, including Singapore, Malaysia and Thailand. However, some companies operating in these markets, including Megaspeed, have faced allegations of illegally reselling restricted chips to China.

Investigations are ongoing to establish whether Nvidia or any individuals associated with the company violated US export regulations, or whether the alleged links form part of a broader espionage operation.