A CEO's affair usually isn't national news. Here's why Nvidia CEO Jensen Huang's is.

Nvidia's board of directors said Sunday it was launching an investigation into CEO Jensen Huang being the target of an alleged Chinese spy, with whom he had an affair.

Huang admitted to the affair in an email to Nvidia employees and is cooperating with the investigation. Reports have identified Alice Huang (no relation), former executive at tech firm Megaspeed, as the person he had the relationship with.

"I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry," Jensen Huang said in a statement.

If you haven't been following the stock market closely, you may not be familiar with Nvidia, one of the world's most valuable companies. And you may be wondering why U.S. security officials would be concerned about a CEO's extramarital affair. Here's what we know so far, and why this tech CEO's affair is a big deal.

Jensen Huang is the CEO of Nvidia, one of the biggest makers of specialized computer chips in the world. Its chips were initially designed for computer graphics, but with the AI boom of the past few years, demand for Nvidia's hardware has skyrocketed. China and the U.S. are in a heated competition for AI technology, and that includes access to chips like the ones Nvidia makes.

Jensen Huang is an American citizen who was born in Taiwan. He founded Nvidia in 1993 and has been the company's president and CEO since, steering the company through the AI boom of the past several years.

According to the New York Times, it's unclear when Jensen Huang met Alice Huang — an alleged Chinese spy — but the two were photographed together in 2024 at a bar in Taipei, Taiwan. It was roughly around that time when Megaspeed, the AI company she worked for, began its push into the AI sector. Multiple news reports were unable to confirm if Alice Huang is still employed at Megaspeed today. Megaspeed has touted its membership in Nvidia's partnership program, which would provide access to its latest technology.

Huang apologized for the affair in a message to Nvidia employees, and asked for privacy for his family. "I take full responsibility for what I did and the hurt I caused," Huang wrote, "and I accept the criticism that comes with it."

He pledged to earn back his employees' confidence, and added that he was cooperating fully with the board's investigation. "I am committed to protecting NVIDIA and supporting America's national security," he wrote.

The New York Times reported that U.S. intelligence officials believe Alice Huang was gathering information for the Chinese government. China denied that it was spying , calling the allegation unsubstantiated. "It is nothing but smears against China," a Ministry of Foreign Affairs spokesperson said.

The New York Times also reported that executives at Nvidia contacted the U.S. Commerce Department last year seeking information about the department's investigation into Megaspeed. The investigation was later transferred to the Department of Justice, which is reportedly looking into Megaspeed's involvement in potentially illegally routing Nvidia products into China.

AI is the biggest thing in tech right now, infiltrating our lives via chatbots like ChatGPT and Claude, and disrupting all sorts of industries from software development and bioengineering. Governments are trying to determine how and when to use AI for security and across business sectors too. China and the U.S. are hastily competing to dominate AI development for uses across multiple industries. The development has been so rapid that some CEOs of AI companies have suggested a pause may be in order before the technology develops beyond what humans can control.

Nvidia has contracts with the U.S. government to use its technology in several areas , and Jensen Huang has a close relationship with President Trump. U.S. officials are trying to determine if the affair may have allowed the Chinese government to receive information about Nvidia's technology and its agreements with the U.S. government. Nvidia's board said in its statement that the company does not believe national security or Nvidia secrets were compromised.

President Trump said late Sunday that he considers Huang "a fine person" who should stay on as CEO of Nvidia.

"I think he probably has an excuse for it. We'll have to hear it," Trump told reporters Sunday night. "He's done an amazing job for our country."