Nvidia scandal creates risks for whole AI industry, not just CEO

Nvidia CEO Jensen Huang speaks during a keynote address at an Nvidia conference in San Jose, California, on March 16. Nvidia Corp. Chief Executive Officer Jensen Huang's affair with an alleged Chinese spy has sent the company's stock plunging, become a focus of internal and government investigations and is now threatening to reverberate across the AI industry. Nvidia shares slid as much as 8.8% on Monday, at one point erasing nearly $400 billion in market valuation, after Huang disclosed the romantic relationship Sunday in a memo to employees. The company's board is assembling a committee of independent directors who will work with outside counsel to investigate reports of Huang being targeted for foreign intelligence. With the stunning revelations, investors need to consider a range of possibilities that may affect not just Huang and Nvidia, but the entire artificial intelligence industry.