- Jensen Huang's wealth fell $7.4 billion in 30 minutes.
- Nvidia CEO admitted affair amid alleged Chinese spy reports.
- California community property rules could impact Huang's wealth.
Nvidia CEO Jensen Huang, a tech magnate widely considered a giant in the artificial intelligence sector, has taken a financial hit after he admitted to cheating on his wife, Lori Huang, amid reports of his affair with a business executive and alleged Chinese spy.
US intelligence agencies suspect that the business executive was gathering information for China. Following this revelation, Nvidia's shares plummeted, resulting in a billion-dollar decline in Huang's wealth. He also slipped down the list of global rich.
According to Forbes, Huang's net worth fell by $7.4 billion to $154.7 billion in the first half hour of trading on November 9. He dropped from eighth to tenth on the list of the world's richest people.
The stock decline came after Nvidia announced an independent investigation into reports that Huang may have been the target of a foreign intelligence operation. In a message to employees, Huang acknowledged the affair and apologised for hurting his wife and children.
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Nvidia's board has said it had no reason to believe national security or company secrets had been compromised. Huang still leads the company. Huang's personal life isn't the only concern for investors. Nvidia is at the centre of the global AI revolution, and uncertainty surrounding its CEO could further complicate an already volatile period for technology stocks.
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While there are no reports of diverse or any reaction from his wife on the issue, the biggest financial question surrounding Huang's personal life is how such an eventuality would affect his wealth.
If Huang's assets were divided equally, Lori could receive approximately $81.1 billion. This amount would be significantly more than the approximately $35 billion settlement received by Jeff Bezos' ex-wife, MacKenzie Scott.
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California, where the Huang family lives, operates under "community property" rules. Under these rules, property acquired during a marriage is generally divided equally upon divorce.
However, the rules may differ for premarital property, certain gifts, inherited property, and property covered by a valid marital agreement. It is not yet clear whether the Huangs entered into any premarital or postmarital agreements.