Nvidia board opens probe as Congress moves on AI chip export limits

Nvidia's board of directors has opened an independent investigation into Chief Executive Jensen Huang's relationship with a woman U.S. intelligence agencies suspect was recruited by China's spy service, a disclosure that has jolted investors and given new momentum to congressional efforts to tighten U.S. restrictions on advanced AI chip exports to China.

According to a full statement published by CNBC-TV18, the board said it had "initiated an independent investigation" and expressed continued confidence in Huang's leadership, stating it had no reason to believe national security was compromised.

Huang acknowledged the relationship and apologized in a letter to colleagues. "I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did," he wrote, adding that he supports the investigation and will cooperate fully and is "committed to protecting NVIDIA and supporting America's national security."

Market reaction

The disclosure hit Nvidia's shares. According to 24/7 Wall St., reported via Yahoo Finance, Nvidia closed down 4.27% at $178.67 on Nov. 9, a market value of about $4.31 trillion. After a subsequent report of a second relationship, the stock fell roughly 8.3% in after-hours trading, dropping below $160 a share — a level it had not breached since June 2025, The Hill reported.

Congress takes up chip rules

Lawmakers are folding export restrictions into the annual National Defense Authorization Act. The Senate version, S. 4784, carries three measures, 24/7 Wall St. reported: the AI Overwatch Act, which would let Congress review licenses for advanced AI chip sales to China and other countries of concern; the Chip Security Act, introduced by Reps. Bill Foster (D-Ill.) and Bill Huizenga (R-Mich.), which would require companies to track AI chips abroad; and the Match Act, which would press allies to restrict sales of chipmaking equipment to China.

The House passed its $1.15 trillion version of the defense bill on July 22, 2026, by a four-vote margin. No vote has been taken on the new measures, and none is law.

House Minority Leader Hakeem Jeffries said on Nov. 9 that he strongly supports restricting U.S. chip sales to China in the final bill and called for Congress to receive a full briefing, after a classified briefing for congressional leaders touched on Nvidia only briefly. Sens. Elizabeth Warren and Jim Banks said the relationship made the concerns "even more urgent."

Nvidia already sells very few data-center chips in China, and its $108 billion third-quarter revenue guidance excludes China data-center sales, according to the report.

The scrutiny is spreading to the executive branch. Commerce Secretary Howard Lutnick has "proactively agreed to appear voluntarily" before the Senate Banking Committee amid bipartisan concerns about the Nvidia matter and the agency's enforcement of chip export controls, The Hill reported.