Potential Divorce for Nvidia CEO Could Cost Him $81 Billion After Admitting to Extramarital Affair - Sarmad

South Korean newspaper Sports Chosun reported that the potential divorce of Jensen Huang, CEO of Nvidia, could result in his wife receiving up to $81.1 billion, a financial settlement that may surpass the amount received by Amazon founder Jeff Bezos’s ex-wife upon their separation.

The newspaper, in a report published on Monday, noted that interest in Huang’s wealth and its division has intensified following his admission of an extramarital affair and his apology to his family. In a letter addressed to company employees, he acknowledged his lack of fidelity to his wife, stating, “I was not faithful to my wife, and my actions have hurt my wife and children,” while affirming his responsibility for his behavior.

His apology came after foreign media reports revealed his relationship with businesswoman Alice Huang, who is suspected of having ties to Chinese intelligence agencies. Previously, the British Financial Times reported that U.S. intelligence officials believe there is a romantic relationship between the two.

Huang’s wealth is estimated at approximately $162.2 billion.

According to the American magazine Forbes, Huang’s wealth stood at approximately $162.2 billion as of November 8.

The newspaper pointed out that if the entirety of this wealth is considered marital assets subject to equal division, his wife, Lori Huang, could receive approximately $81.1 billion.

This estimate is based on the property division system in force in the U.S. state of California, which generally mandates the equal division of assets acquired during the marriage between spouses.

Jensen Huang married his wife Lori in 1985, and he founded Nvidia in 1993. The issue of wealth division holds particular significance because a large portion of his current wealth is linked to the substantial rise in the value of his company’s shares following his marriage.

$81 billion: A hypothetical estimate, not a confirmed settlement.

However, the newspaper noted that it cannot be confirmed that Huang’s wife will actually receive $81.1 billion. The determination of the settlement value depends on the timing of asset acquisition, the nature of ownership, and whether there are trusts, debts, or separate financial agreements between the spouses.

Furthermore, California’s divorce system does not automatically grant one spouse a larger share of property due to proven infidelity, making the $81.1 billion figure a hypothetical estimate based on splitting current wealth in half, rather than a confirmed value for a potential settlement.

Internal investigation at Nvidia regarding the case.

The repercussions of the controversy surrounding Huang’s relationship with Alice Huang have extended beyond personal matters to include national security dimensions.

The newspaper stated that Nvidia’s board of directors formed an investigative committee comprising independent members and decided to examine the allegations with the assistance of external legal experts.

For his part, Huang is holding onto his position as CEO and has expressed his willingness to cooperate with the investigation, amid anticipation over whether his admission of the affair will lead to an actual divorce and how his substantial wealth will be handled.

Bezos and Gates settlements come to the fore.

In 2019, Amazon founder Jeff Bezos drew attention after transferring assets worth approximately $41.2 billion to his ex-wife, MacKenzie Scott, as part of their divorce.

Microsoft founder Bill Gates also made headlines in 2021 after transferring assets worth approximately $19.1 billion upon his separation from his wife, Melinda French Gates.

Compared to these cases, estimates suggest that Huang’s wife could receive approximately $81.1 billion, which could make any financial settlement in the event of a divorce the largest of its kind among ultra-wealthy individuals.