Nvidia’s board is conducting an independent investigation into allegations that a foreign intelligence agency approached CEO Jensen Huang, heightening concerns about a founder-centric management structure. Huang is expected to remain in his post during the investigation, but a lack of a successor and family involvement in management could complicate the board’s judgment.

On Nov. 10, Japanese media outlet Gigazine reported that controversy over Huang’s private life is spreading into a corporate governance issue at Nvidia.

Huang acknowledged an extramarital relationship and apologised in an email sent to employees on Nov. 8. There were also reports that U.S. intelligence authorities suspect the woman involved may have ties to a Chinese intelligence agency. It has not been confirmed whether there was any actual information leak or breach of national security.

Nvidia’s board launched an independent investigation the same day. On Nov. 10, it appointed former acting U.S. attorney for the Southern District of New York Joon H. Kim (김준) and law firm Wachtell Lipton as outside investigators. The board expressed confidence in Huang, saying there is no basis so far to believe company secrets or national security were compromised.

The incident has also drawn attention to management authority concentrated in Huang. Huang, who co-founded Nvidia in 1993, is known to have about 60 direct reports and to be involved across the organisation. Concerns about a management vacuum are also growing because there is no clear figure being mentioned as a successor.

His stake and family involvement in the company are also behind the controversy. Nvidia’s May disclosure this year showed Huang’s beneficially owned shares at about 870.6 million, or 3.58 percent of the total.

His son Spencer Huang (스펜서) is in charge of product management related to robotics, and his daughter Madison Huang (매디슨) is responsible for product marketing in the software division. His son-in-law Nico Caprez (니코 카프레즈) is also reported to be involved in business development.

Nvidia disclosed, however, that the two children are not part of the company’s top management and do not report directly to Huang.

Nvidia shares also fell after the controversy involving Huang. The market is assessing that the board’s independent oversight capacity and succession system are being put to the test.

Depending on the results of the investigation, Huang’s future and whether Nvidia will overhaul its governance structure are expected to emerge as key issues.