Behind virtually all modern technology is a component that is often invisible to the end consumer but has become the focus of a silent global contest: chips. Essential to smartphones, cars, artificial intelligence systems, and even military applications, these semiconductors have ceased to be merely parts of the industry and have become strategic assets.
In this scenario, Nvidia is the protagonist. We are talking about one of the world's largest chip manufacturers. Its technology is used to train AI models. Its client roster includes names such as Google, Microsoft, Amazon, Meta, and so on.
The company's market value is around US$4.5 trillion, making it the second most valuable company in the world—the top spot was taken by Apple, which is now valued at US$4.97 trillion.
Last October, Nvidia became the first company to surpass US$5 trillion. Before that, in July, it had already reached the US$4 trillion mark. The leap was very fast: the company first reached US$1 trillion in June 2023 and, roughly a year later, had already tripled that value.
The name behind the success is Jensen Huang, founder and CEO.
The race for semiconductors has taken on clearer contours as competition between countries and companies. The concentration of production in a few industrial hubs and the difficulty of rapidly expanding supply reinforced the perception that access to chips also involves market power and strategic influence.
Meanwhile, tensions between the United States and China began to be reflected directly in the industry.In recent years, the U.S. government adopted restrictions to limit Chinese access to advanced technologies, especially equipment and software used in the production of cutting-edge chips.
This scenario marked a turning point: what had previously been a trade dispute came to be treated as a strategic issue. From then on, governments began to consider semiconductors a national security issue, with more aggressive industrial policies and initiatives aimed at reducing external dependence.
The geopolitical saga
To understand the crisis, we start from two points:
- Nvidia announced this Sunday (8) that it had launched an independent investigation to determine whether Jensen Huang was the target of a foreign espionage operation.
- Huang admitted having been unfaithful to his wife. According to The New York Times, he had an extramarital relationship with executive Alice Huang (the identical surname is a mere coincidence).
Bringing the two points together: according to a U.S. investigation, Alice Huang was working as an intelligence agent for China.
Alice Huang and Jensen Huang (center) at a bar in Taipei in 2024. – Image taken from NetThunder’s LinkedIn profileJensen Huang admits extramarital affair
Reuters obtained a message sent by Jensen Huang to Nvidia employees. In the text, the CEO confirms the extramarital relationship: “I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did.”
“My responsibility is to serve you all and be worthy of your trust.I was not up to that responsibility” – he concluded the message.
In the letter, Jensen Huang does not mention Alice Huang or the executive’s alleged ties to China.
The CEO said he supports the investigation being conducted by the company and said he will cooperate. He will remain in his position while the investigation is underway.
To my wife and family: I love you all. I know that an apology cannot undo what I did. I hope our family recovers and that, over time, I can regain your trust.
To my colleagues at NVIDIA, including those I have worked with for decades, and to our board, partners, and shareholders around the world: you deserve better from me. Leading NVIDIA is the privilege of my life. My responsibility is to serve you and be worthy of your trust. I failed in that responsibility. I am fully committed to NVIDIA and will work to regain your trust.
Nvidia says it has no reason to believe that national security or the company’s confidential information has been compromised, but it will investigate the case.
“The Board prioritizes the national and economic security of the United States, which is fundamental to the interests of NVIDIA and its shareholders. Although the Board has no reason to believe that secrets relating to national security or NVIDIA have been compromised, the Board’s investigation will examine all available information” – says the statement.
Initially, Jensen Huang said there was nothing problematic or unusual about his relationship with Alice Huang.In an interview with Bloomberg News last month, he said that his interactions with the executive were “related to Megaspeed, and that everything was completely normal and nothing unusual.”
As Megaspeed’s chip purchases increased, the two began spending more time together, the NYT reports. In June 2024, they met other executives at a bar in Taipei after a technology trade show. One year later, they had dinner in Taipei—also accompanied by other businesspeople.
Who is Alice Huang?
- Alice Huang was a TV reporter in China and later joined Megaspeed—a data center company headquartered in Singapore.
- According to the New York Times, the company spent US$4.8 billion on Nvidia chips over two years.
- The United States opened an investigation into Megaspeed, which is suspected of helping China gain access to advanced AI chips.
The video below, from May 2025, is from Taiwanese media. SETN recorded the moment the two left a dinner in Taipei.
Did the White House know?
According to The New York Times, yes.
Reports say that U.S. President Donald Trump was informed about the suspicions last year. But the Republican would apparently have chosen not to react.The White House was afraid of damaging relations with China and Nvidia’s position in the market.
According to the newspaper, Marco Rubio, the U.S. secretary of state, oversaw the preparation of confidential documents that warned about Jensen Huang’s relationship.
The White House and U.S. intelligence agencies did not comment on the case. Asked on Sunday, Donald Trump said he had not spoken with Huang – but considers him an honorable person.
“I only know that he is a good person, but you never know what is happening. I am sure… I hope everything is fine. He did an incredible job, so I certainly hope… he is a good person, in my opinion. I think he is an honorable guy. I think he probably has an excuse for this.”
Asked whether Jensen Huang would accompany him on a trip through Asia in the coming days, Trump said he did not know.
“I don’t know, but I would certainly have him with me. I mean, we need to find… I didn’t hear that he did anything wrong.”
Republican lawmakers, the same party as Trump, asked Huang to appear before Congress in the country to provide clarifications as early as November.
Trump and Jensen Huang grew closer in recent years. – Image: noamgalai and FotoField/ShutterstockAnd China?
China had already denied any act of espionage involving Jensen Huang last month.
The country’s Ministry of Foreign Affairs reiterated on Monday (9) that there is no basis for the alleged espionage.The ministry spokesperson, Guo Jiakun, said there is a “so-called narrative of Chinese espionage” and that this “is completely unfounded defamation and slander.”
Nvidia’s novel arrives at a turbulent moment
The U.S. elections ushered in a sweeping victory for the Democratic Party, which will have a majority in the House and Senate—as well as having elected governors. Democrats are expected to bring greater scrutiny to technology companies, particularly regarding the construction of new data centers.
The data centers that power artificial intelligence, remember, consume large amounts of water and energy. In different parts of the country, local populations are displeased with the expansion of these facilities.
Big tech stocks fell considerably over the past week. As we reported, investors wiped $2.5 trillion off the market value of the Nasdaq 100 during a heavy wave of selling led by tech stocks.
Who Is Jensen Huang
Jensen Huang was born in Taipei, Taiwan, in 1963. He spent part of his childhood in Taiwan and Thailand, until his parents decided to send him and his brother to the United States. The boys did not speak English and were taken in by their uncles, who were also immigrants and sent them to study at Oneida Baptist Institute in Kentucky. The two brothers were given permission to live, eat and work at the institution, which at the time only offered undergraduate courses. The young Jensen Huang was responsible for cleaning the toilets.
A few years later, they moved to Oregon and reunited with their parents, who had also immigrated to the United States.There, Huang attended Oregon State University, where he studied Electrical Engineering. He says that it was there that he became fascinated by “the magic behind” computers. It was during his studies that he met his wife Lori. In addition, at the time he had his first contact with Nvidia’s two co-founders, Chris Malachowsky and Curtis Priem.
- Huang graduated as an engineer in 1984.
- It was that year that the era of personal computers began, with the launch of the first Mac computers.
- He also earned a master’s degree in Electrical Engineering from Stanford University.
- At the same time, he held various positions at technology companies such as Advanced Micro Devices (AMD) and LSI Logic, which he left shortly before founding Nvidia.
- The beginning of the new company, however, was challenging.
- Just two years after its founding, the company’s stock price fell by 90%.
- In 1999, Nvidia began to turn its fortunes around with the launch of the Graphics Processing Unit (GPU), a type of microprocessor that redefined computer gaming.
- From then on, the company continued working on the development of GPU-accelerated computing, a model that harnesses the widespread use of parallel graphics processors and enables faster performance for programs that require immense computing power, such as data analysis, simulations, visualizations, and artificial intelligence.
- The bet on AI has sent the stock price soaring in recent years.
- Growth has been impressive, and everything indicates that Nvidia is set to continue making history.
Bruno Capozzi is a journalist, holds a master's degree in Social Sciences, and is the executive editor of OD.
