The chief executive’s personal relationship has raised questions about the leadership, corporate governance and U.S. national security of Nvidia, one of the world’s most valuable technology companies. The company’s market capitalization has lost about $430 billion in two trading days.

Kathmandu. Jensen Huang, the CEO of Nvidia, the world’s leading artificial intelligence (AI) chip maker, has been dragged into controversy due to personal relationships and a possible Chinese espionage scandal. The company’s share price has plummeted after his relationship with a Chinese businessman became public, and questions have been raised about the continuity of leadership.

Huang admitted to being dishonest to his wife and apologized to the company’s employees. However, US media reported that the woman who was in a relationship with him was suspected of working for Chinese intelligence.

After the case became public, Nvidia’s board of directors has launched an independent investigation into whether Huang was the target of foreign intelligence activities. The company said Huang will continue to serve as chief executive.

The controversy surrounding Huang has also put pressure on Nvidia’s stock market. According to Reuters, the company’s market capitalization fell by about $430 billion in two trading days.

The company’s shares fell more than 5% in Monday’s trading. The new controversy comes as investors are already concerned about the sustainability and overvaluation of investments in the AI sector.

During the transaction, Nvidia fell from the second most valuable company in the world to the third place. Microsoft took its place for a while. However, when the business was closed, Nvidia returned to the second place.

The case has also sparked a debate over Nvidia’s institutional structure. Huang is not only the company’s founder, but also one of the most influential leaders in the global expansion of the AI industry.

The company’s operating style is also believed to be Huang-centric. A large number of high-level executives work directly under his leadership. However, there is no public discussion of a clear successor as to who can take over the leadership of the company after him.

If for some reason Huang is forced to step down, the question of who the company will lead could be crucial for investors.

Nvidia’s valuation doesn’t just depend on its chip technology. The company’s strategy, AI market expansion, and Huang’s leadership abilities have also played a big role in that.

Another important aspect of this episode is U.S. national security and technology competition with China.

U.S. intelligence agencies have concluded that Alice Huang, a businesswoman with ties to Huang, provided information to Beijing. She is said to be a former executive associated with Megaspeed International, a Singapore-based data center company.

The company was also accused of transporting Nvidia’s advanced chips to China. But whether or not Huang had knowledge of spying for China and whether any confidential business information was leaked is still under investigation.

Nvidia’s board of directors has said that there is no reason to believe that national security or the company’s confidential information has been compromised. China has also denied the allegations of espionage as baseless.

The controversy over Nvidia comes at a time when investors are questioning the valuation and future revenue potential of US AI companies.

The debate over whether the massive investment in AI can deliver the expected returns in the future is intense. The decline in Nvidia’s shares should also be seen in the context of this broader concern.

The controversy surrounding Huang’s personal relationship has created further uncertainty over the company’s leadership and corporate governance. It could also affect the risk assessment of those who invest in the AI industry.