Rich dudes getting around a bit is expected, But Hwang a. gave a honeypot spy access to trade secrets (allegedly — though the company is taking this seriously) and b. in a second affair, fraternized with a lower-ranking officer of the company. (Companies notoriously don’t take these seriously, even when there’s evidence of duress, but this looks bad compounded with the spy thing, and highlights how he’s a security risk.)

Again, it is routine for c-suite officers to get a bit on the side, but indiscretion is seen as a symptom of liability. As the whole Ubisoft senior management sex ring debacle shows, to the company and investors it’s less about the scandal and more about its public visibility.

However, nVidia has been wanting to sell its state-of-the-art chips in Beijing since the beginning, creating a conspicuous conflict in the AI investment is national security because we have to beat China narrative. So I wonder if this figures into the honeypot story.