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Back“Bloomberg”: The Chinese woman involved in the “Nvidia” scandal lives in Beijing
“Bloomberg”: The Chinese woman involved in the “Nvidia” scandal lives in Beijing
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الشرق الأوسط10 minutes agoBusiness3 min readArgentinaView original

“Bloomberg”: The Chinese woman involved in the “Nvidia” scandal lives in Beijing

Nvidia shares fall 8% after reports of the CEO’s relationship with a Chinese businesswoman and an executive director at the company

Quick Look

  • Nvidia's board of directors meets to decide on the dismissal of CEO Jensen Huang against the backdrop of reports of two extramarital affairs, one with a Chinese businesswoman suspected of being a spy, and the other with an executive working under his supervision.
  • The company's stock fell 8% and lost about $600 billion in market value this week.

AI-generated summary

Why It Matters

NVIDIA is the leading supplier of AI chips, co-founded by Jensen Huang and built over more than three decades into the premier chip supplier at the heart of the global AI boom and the US-China technology rivalry. Huang owns about 3.6 percent of Nvidia shares and has dozens of direct reports, highlighting the tight control he exercises over the company.

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Bloomberg News reported, citing informed sources, that Alice Huang, the Chinese suspected spy involved in a scandal rocking Nvidia CEO Jensen Huang, has returned to her homeland.

The report added that Alice Huang is currently living in Beijing with the knowledge of security officials.

Reuters news agency had quoted an informed source as saying that Nvidia's board of directors is scheduled to meet to make a decision regarding the dismissal of the CEO, at a time when the leading company in supplying artificial intelligence chips is facing reports of two extramarital affairs involving its CEO.

A source told Reuters that Nvidia's board of directors is scheduled to meet to decide on the dismissal of CEO Jensen Huang, at a time when the leading supplier of artificial intelligence chips is facing reports of two extramarital affairs involving its CEO.

Huang's departure would leave a leadership vacuum at the nearly $4 trillion company, which he co-founded and built over more than three decades into the premier chip supplier at the heart of the global artificial intelligence boom and the technology rivalry between the United States and China.

Huang (63 years old) owns about 3.6 percent of Nvidia shares. He also has dozens of direct reports, highlighting the tight control he exercises over the company.

The company's stock fell by about eight percent in after-hours trading after the Wall Street Journal reported the news that NVIDIA was preparing to fire Huang. The company has lost about $600 billion in market value this week since the board of directors announced the opening of an investigation into his relationship with a Chinese businesswoman.

Earlier on Wednesday, the New York Times reported that Huang was also having an extramarital affair with one of the company's female executives working under his supervision. The New York Times quoted five people who worked at the company as saying that the relationship was with Kimberly Powell, vice president of the healthcare department at Nvidia.

Democrat Scott Cullum won a seat in the US Senate from the traditionally conservative state of Mississippi, according to media network estimates on Wednesday, becoming the first African American to be elected to the Senate from this southern state in more than 140 years.

Cullum, a 43-year-old prosecutor, was able to defeat the current Republican Senator, Cindy Hyde-Smith, in the midterm elections in which the Democrats achieved a landslide victory over the Republicans, thus regaining the majority in both chambers of Congress.

Collom's victory comes to intensify the blow to President Donald Trump, as voters across the country turned their backs on his Republican Party, even in states that have not elected any Democrat to the House of Representatives or Senate in Washington for decades.

This latest victory, which was announced by American media on Wednesday, including CNN, NBC, and CBS, will give the Democrats 55 seats in the 100-seat Senate, compared to 44 seats for the Republicans, pending the outcome of the state of Alaska, which has not yet been decided.

Hyde-Smith, who has been in office since 2018, acknowledged her defeat in the electoral race in a video clip she posted on “X”.

“Although this is not the outcome we worked for or hoped for, I respect the decision of Mississippi voters,” the 67-year-old senator said. “I want to congratulate Scott Cullum, wishing him well as he takes on the great responsibility of representing our great state.”

Cullum will become the first Democratic senator from Mississippi in 40 years, and the first black senator to represent the state since the Reconstruction era that followed the Civil War.

What to Watch

AI outlook — possibilities, not facts

  • Nvidia's board of directors will make a decision on Jensen Huang's dismissal soon

    Likely · Within days

  • NVIDIA stock will continue to fluctuate and its market value will be negatively affected in the short term

    Very likely · Within days

Open Questions

  • Will Nvidia's board actually vote to fire Jensen Huang, and what will be the timing of the decision?
  • What evidence supports the suspicion that Alice Hwang is a spy, and what is her relationship with Hwang?
  • What are the implications of Huang's departure for Nvidia's leadership and long-term strategy in the AI ​​chip market?
  • Will the American or Chinese authorities take any legal or diplomatic measures against the backdrop of this scandal?

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This article was originally published by الشرق الأوسط.

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