Nvidia CEO Faces Ouster Amid Chinese Chip Smuggling Scandal
Nvidia CEO Jensen Huang faces potential removal following reports of an affair with a Chinese spy and the illegal acquisition of restricted AI chips by Chinese universities.
Northwestern Polytechnical University, a Chinese institution tied to the People's Liberation Army and blacklisted by the U.S. since 2001, bypassed export controls to acquire restricted Nvidia H200 AI chips in 2026. Procurement records show the university purchased two processors in October for 874,700 yuan ($123,000) and two more in September for 796,000 yuan via a domestic supplier, Shaanxi Bosuan Network Technology. The university also rented server capacity featuring H200, A100, and A800 chips. Similar acquisitions were identified at Beihang University, Shenzhen University, and Wuhan University of Technology.
These breaches coincide with a leadership crisis at Nvidia Inc. CEO Jensen Huang is under investigation by the FBI and the company's board following reports of an affair with Alice Huang, a former Megaspeed executive accused of spying for Beijing. Allegations suggest the relationship may have facilitated $7.5 billion in chip shipments to Chinese firms. While the Nvidia board initially stated there was no evidence that national security information was compromised, reports indicate the board is now preparing to oust Huang, who has acknowledged the affair.
U.S. lawmakers have requested a November 18 briefing with Huang to address his lobbying for looser export restrictions and his ties to the suspected operative. While Under Secretary Jeffrey Kessler argued that controlled sales of H200 chips strengthen the American technology ecosystem, critics warn the hardware accelerates China's military modernization. The Ministry of Foreign Affairs of the People's Republic of China has opposed these restrictions, calling them discriminatory.
