Dear Readers,
Every now and again the AI trade gets real. At the exact moment when Jensen Huang of Nvidia was most influential with Donald Trump (back mid 2025 to early 2026), there was something else going on in his personal life. This weekend it came out that the Nvidia CEO sent staff in an email that he had an affair and that the company’s board has opened an independent investigation into allegations that the woman is a Chinese spy. This is the transcript of the Email:
Subject: A message to our company
Body: “I owe my family and all of you an apology.
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.
Throughout my life, my family has given me love and support. They deserve my honesty and loyalty. Instead, I let them down and damaged the life we built together. I take full responsibility for what I did and the hurt I caused, and I accept the criticism that comes with it.
To my wife and family: I love you. I know an apology cannot undo what I have done. I hope our family will heal and that, over time, I can earn back your trust.
To my colleagues at NVIDIA, including those I have worked alongside 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 have fallen short of that responsibility. I am fully committed to NVIDIA and will work to earn back your confidence.
Regarding the national security concerns raised in news reports, NVIDIA’s Board of Directors has initiated an independent investigation. I support the investigation and will cooperate fully. I love our country and our company, and I am committed to protecting NVIDIA and supporting America’s national security. I am proud and grateful to be an American.
My family bears no responsibility for my choices. I do. Please give them privacy.” - Jensen Huang, Nvidia CEO.
Jensen Huang's most significant involvement with Alice Huang (also known as Huang Le), an executive at Singapore-based data center company Megaspeed, spans from mid-2024 through early 2026. This was the most critical period when China managed to obtain access to many of Nvidia’s critical GPUs and AI chips and who essentially caught up in the open-source AI race. Nvidia's board said an independent committee, assisted by outside counsel, will investigate the matter.
Jensen’s Influence on Trump has been Enormous
During the same period of the affair, Jensen Huang struck up a very close rapport with the POTUS and the spy’s (overreach) mission may have already been completed at this time. Huang has been a key voice in Washington pushing to loosen restrictions on AI chip sales to China.
While the AI trade tetters on the bring of a bear market, Nvidia’s stock was down 4% NVDA 0.00%↑ after the story broke. Despite strict U.S. export controls aimed at restricting China’s access to advanced artificial intelligence hardware (such as Nvidia's A100, H100, B200, and B300 chips). These tactics include shell companies in places like Singapore, Malaysia, the UAE and Hong Kong, among others. Chinese organizations have created a variety of mechanisms including overseas subsidiaries or shell entities in intermediary countries to lease server space equipped with top-tier Nvidia clusters.
Jensen Huang has long argued that keeping American technology in the Chinese market strengthens U.S. competitiveness and prevented China from developing their own potentially more advanced chips. Now in late 2026, we don’t know how much influence Alice Huang had on his viewpoints and opinions. His talking points could have come from in part, the highest levels of China. (I actually agree with him that the restrictions have actually helped China innovate in the sector and have been counter-productive). Jensen Huang has impacted AI policy more than any other Tech executive in the world, so that’s why this is a big deal.
Secretary of State Marco Rubio warned top Trump officials about Huang's relationship with a woman U.S. intelligence officials believed was a Chinese spy, The New York Times (NYT) reported Friday. In the days following, there’s been a ramp up of pressure. The Midterm “Blue Tsunami” wave and now Jensen’s spy story truly is bearish for the AI bull market. Donald Trump knew about the situation for at least a year and didn’t want it to hamper AI chip sales. The plot is like a honeypot spy movie plot, but has real ramifications for AI history and U.S. National security.
Democrats move on the Level of Corruption
Sen. Chris Coons (D-Del.) promised a probe of the latest Times report and Huang’s relationships.
He went on to say via Axios, “The more I learn about the insane relationship between the Trump Administration, Chinese spies, and AI billionaires, the more I’m convinced there is nothing this administration does that isn’t corrupt. Congress will investigate and get answers,” Coons posted to X, linking in another post to the Times’ story.
From what we can tell from the investigative journalism by U.S. outlets, the woman, Alice Huang, was recruited to seek information and potentially push for Nvidia’s advanced chips to be made available in China, countering existing restrictions, the Times reported. It appears the affair led to a successful mission for China at a considerable cost to the Nvidia’s CEO personal life.
With so much concentration of power in the U.S’s approach to AI supremacy, honeypot spy stories of this nature become increasingly dangerous. Jensen Huang has long argued that restricting Nvidia's access to China risks undermining America's technological advantage and while his affairs don’t change the merits of his viewpoint, his proximity to Trump during that period is a serious cause for concern - there would be a lot that we still don’t know.
President Donald Trump backed Nvidia CEO Jensen Huang on Sunday:
"I think he's an honorable guy," Trump told reporters on Sunday. "I think he probably has an excuse for it. You have to hear it."
A bear market and a spy story, this is America.
At 6:00 PM ET, US stock market futures opened for the first time since Nvidia CEO Jensen Huang admitted to a "relationship" with a Chinese spy.
“Jensanity” But Why did you Sleep with a Chinese Spy?
By 6:01 PM ET, S&P 500 futures had erased an implied -$300 billion in market cap. Between June 2024 and February, 2026 (Business Insider): Megaspeed's sister company in Malaysia purchased roughly $4.8 billion in advanced Nvidia AI hardware. In recent weeks there’s been a AI bull market pull-back that isn’t technically a bear market yet, but there’s a lot of downward momentum on semiconductor and Neo Cloud stocks. Trump was briefed earlier this year about Huang's relationship with the potential spy but chose not to act. But how much longer can you protect the AI trade? The Midterms, widely seen as a referendum on AI datacenters, and the spy story could have a profound impact on already plummeting AI sentiment in the U.S.
Taiwan (where I live) and where Jensen Huang was born is shocked that their hometown hero would fall for a Chinese Spy as Tim Culpan (formerly Bloomberg) reported to German based media DW as this story broke five days ago. It’s just such a surreal moment in the AI cycle. The U.S. still restricts exports of Nvidia’s most advanced AI chips to China, even as China’s open-weight models are taking significant token marketshare from U.S. AI labs progressively in 2026.
In his note to staff, Huang said he was “proud and grateful” to be an American. Donald Trump has been a major AI accelerationist as Venture Capital interests have managed to hack the White House during his second term in Washington. Trump has worked with the most powerful BigTech companies and even rebranded advanced AI development as "Super Intelligence" (SI) and pledged support to states looking to build AI infrastructure and attract investment. This has led to AI becoming even less popular, as Trump’s approval ratings over the economy and the Iran war have been a huge failure.
Jensen Huang’s affair is going to come as a sting to the American public, where young people increasingly oppose BigTech and favor some form of an AI slowdown. The spy story only compounds AI’s reputation as being a growth hack for the financial elite. While the technology is not being adopted widely or showing ROI while exhibiting increasing layers of circular vendor, circular debt and widespread circular financing where you cannot even trust great Earnings any longer to the same degree as normal for many of these companies.
The Public Already Mistrusts Generative AI Hype
The U.S. Midterms already had the verdict, but this spy story comes out at a time when the AI bull market is already vulnerable. How do you reconcile the levels of centralization in the AI industry and the levels of Venture Capital influence in Washington and with this clearly corrupt and stock market jacking POTUS? The stunning levels of corruption, bribes, kickbacks and geopolitical manipulation of this Administration and now linked with the Generative AI hype cycle. How do you reconcile what AI has done to the Republic? And where does this immigrant from Taiwan who is the biggest success story ever, fit in all of this? Nvidia has market cap of $4.5 Tr. that would have been unthinkable even just a few years ago. It has a significant and all-consuming monopoly on the best GPUs and AI chips. It has accomplished AI supremacy, with benefits.
There’s going to be some frantic investigations and political theatre ahead. Three House Republican committee chairs sent a letter to Huang on Wednesday asking him to sit for a closed-door briefing with lawmakers on Nov. 18. The past five days have been a honeyspot story for the ages in AI, that used to be a pretty boring industry before 2022.
A Taste for GPU Sales
This is a matter of U.S. National security. U.S. intelligence agencies conducted electronic surveillance on a woman named Alice Huang (also known as Huang Le), an executive affiliated with Megaspeed, a Singapore-based cloud service provider. Singapore has increasingly become an AI washing proxy for Chinese activities. It also has a reputation of being fairly pro-AI adoption. Nvidia released a statement confirming the investigation Sunday.
Chinese officials also allegedly tasked her with persuading Huang to lobby for shipping some of the company’s most advanced GPUs to China as a sort of stretch goal. Jensen Huang and Trump have guided a fairly anti AI regulation artificial intelligence policy framework for the U.S. in the mid 2020s, inspite of dramatic AI risks that we all knew were coming and they seem to have done so for their own commercial interests.
It’s a fact that Jensen Huang did successfully petition Trump in 2025 to allow more GPU exports to China, and later struck a deal to also sell limited quantities of its second-most-powerful chip there. Against the advice of U.S. National security advisors and the so-called China hawks in Washington. The optics don’t look good for the American public, who are increasingly not in support of Generative AI being pushed on all levels of society. And what would even happen to Nvidia if Jensen Huang was forced to step down as CEO? It could be a disaster.
According to Chinese private-equity/fund database records, Alice’s early career began in media as a television reporter with stints listed at Hunan TV and China's state broadcaster, CCTV. She subsequently transitioned into finance and private wealth management, with records listing her as an assistant to the president of HSBC's private banking division and later as a Vice President at CITIC Securities. Alice later shifted into the technology sector, joining a network of investors centered around Shanghai and Zhejiang province. She became a senior executive at Megaspeed, a Singapore-based data center company and major purchaser of Nvidia AI hardware.
So during electronic surveillance of Alice Huang, U.S. National Security agencies intercepted communications with an unnamed American citizen. Following standard "unmasking" procedures, intelligence officials identified the American as Nvidia CEO Jensen Huang. Somehow, Jensen was never given a formal defensive briefing by foreign counterintelligence, likely to avoid tipping off the surveillance target. Nvidia has had tremendous benefits aligning with Trump, as have many other U.S. CEOs in their relationship with the POTUS. That there was sex involved is part of the American rub. So this is how capitalism intersects with politics in today’s democracy and marketplace? Generative AI has been very lucrative to a few calling the shots.
An AI Oligarchy for the Ages
Meanwhile the U.S. has used TSMC and Taiwan for their own self-interests to a degree that I don’t think even history will ever fully acknowledge. Micron is not even paying Taiwanese employees a good wage in Taiwan! Arizona serves as the anchor for TSMC's leading-edge logic fabrication outside of Taiwan. The U.S. is also selling expensive weapons to Taiwan. TSMC has been asked to keep expanding in the U.S. Following major capital commitments already scaling to at least $265 billion where the Phoenix site has expanded well beyond its initial 2020 scope, with new plans for Texas. It’s a kind of exploitation of the relationship. Taiwan’s GDP is growing over 14% in 2026, but most Taiwanese are not seeing the direct benefits on their lives.
"I love our country and our company. I am committed to protecting Nvidia and supporting America's national security. I am proud and grateful to be an American." - CEO, Nvidia.
Jensen’s role in the AI boom has been complex and he seems to have been an easy target for the Chinese. Meanwhile the concentration risk of AI related stocks in the U.S. stock market has reached unprecedented levels. The 10 largest companies make up ~37% to 40% of the S&P index. There have been a lot of shady and corrupt deals in the AI bull market, and a honeypot spy story is the least of our worries. We’ve never seen Silicon Valley influencing the State like this. Even the FED Chair is a friend of Silicon Valley elites.
Nvidia reports third-quarter earnings on Nov. 17 and will hold a major conference in Washington, D.C., at the end of the month. It is not fully clear how Jensen Huang can keep on as CEO, but he will certainly try. The extreme levels of power and influence that U.S. companies like Nvidia, Anthropic, OpenAI and Alphabet have on the future is not healthy for anyone. We risk taking monopoly capitalism to new extremes that will be difficult to unwind. With new kinds of corruption like circular financing and new levels of debt that aren’t even fully in the open.
Jensen’s partnership with Donald Trump in recent years has been counterproductive to the AI cycle’s sustainable growth. But it has been good for Nvidia short-term sales. But if you align yourself with a corrupt President and fall for a Chinese spy what does it say about you? What does it say about your character and your values? About the last 33 years of entrepreneurship or what it takes to be successful in cutthroat Silicon Valley?
Silicon Valley has become vastly more corrupt in the 2020s pushing Generative AI as a growth lever.
How do we live with what Generative AI has become?
The declining AI sentiment in the U.S. says a lot about what it’s doing to the economy where AI is inflationary and increasing not just utility bills, affordability concerns but healthcare prices and lowering the confidence of younger or older workers in the labor market due to low-hiring.
On May 13, 2026, New York-based short seller Culper Research published a 40-page report titled “NVIDIA (NVDA): The China Problem.” They spotted Jensen’s Huang’s affair six months early and even called it a risk factor.
So during some of Nvidia’s best months on the stock market, Jensen Huang was secretly partying? This story is too much for me.
China is roughly 3-8 years behind the U.S. in Lithography capabilities and AI chip (GPU) technology. I’m not going to see the leather jacket hero-worshiping the same way any longer. We don’t need more elites, we need a more useful technology.
Trump who himself has an incredibly long history of sexual misconduct said to journalists that Jensen probably had a “good excuse'“ for it? Wtf has America become! There's so many parts of this story that are signs of serious corruption at the highest of levels.
Beijing is calling the allegations a "Smear Campaign".