Silicon Valley Is Still Defending Jensen Huang

The news of Jensen Huang’s resignation has sent ripples through the tech world, marking a sudden and unexpected end to his 33-year tenure at the helm of Nvidia. The company’s roughly 60,000 employees, known for their fierce loyalty, were initially slow to react, trusting the board to handle the situation. However, as details emerged, the mood shifted from business as usual to stunned disbelief.

Huang’s departure came after a week of escalating revelations. The New York Times reported on Wednesday that he had an extramarital affair with a vice president at Nvidia, and Reuters revealed on Thursday a second “intimate relationship” with an employee. These disclosures were compounded by reports that Huang had a relationship with Alice Huang, a businesswoman identified as an alleged asset of China’s Ministry of State Security.

The affair with Alice Huang has cast a shadow over the company, with President Donald Trump stating that the FBI is “looking into it.” China has denied that Alice Huang is a spy, and Nvidia’s board has stated it does not believe Huang compromised any secrets. Still, the board has hired the law firm Wachtell Lipton to conduct an investigation into the matter.

Loyalty and Defense

Inside Nvidia, the culture is deeply ingrained, with employees often referring to themselves as “team green.” The company’s global turnover rate is reportedly among the lowest in tech, and workers have long admired Huang for keeping layoffs rare and red tape sparing. This loyalty was on full display in the days following the initial reports, with many employees defending their leader.

Venture capitalists and industry peers have also rallied behind Huang, arguing that a single mistake should not erase his decades of leadership. Antonio Gracias, a venture capitalist, wrote on X that “one mistake does not erase a lifetime of leadership and contribution in building NVDA.” Sarah Guo echoed this sentiment, stating that a founder who has spent 30 years building such a unique company has earned the presumption to keep leading it.

Some former employees, however, believe there is more to the story. One insisted that something “more sinister” must have been at play, suggesting that the alleged affairs alone should not have led to his departure.

Market Impact and Future

The instability at Nvidia has raised concerns about the broader AI market. A chief executive of one AI company, speaking on condition of anonymity, warned that a “new professional CEO won’t do any of that,” referring to Nvidia’s aggressive strategy of bankrolling startups and acquiring companies like Hugging Face. This, the entrepreneur argued, increases “systemic risk for the AI trade and AI bubble.”

Nvidia’s shares have already sunk to their lowest point in more than a year, reflecting investor anxiety. The company’s next quarterly earnings report is scheduled for next week, and analysts are closely watching for any signs of further disruption. Despite the turmoil, Nvidia’s internal operations are reportedly continuing with Huang’s vision intact, but the long-term implications of his departure remain uncertain.