As Deepfakes Flourish, Countries Struggle With Response

A face covered by a wireframe, which is used to create a deepfake image. Reuters TV, via Reuters
A face covered by a wireframe, which is used to create a deepfake image. Reuters TV, via Reuters
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As Deepfakes Flourish, Countries Struggle With Response

A face covered by a wireframe, which is used to create a deepfake image. Reuters TV, via Reuters
A face covered by a wireframe, which is used to create a deepfake image. Reuters TV, via Reuters

software that allows people to swap faces, voices and other characteristics to create digital forgeries — has been used in recent years to make a synthetic substitute of Elon Musk that shilled a cryptocurrency scam, to digitally “undress” more than 100,000 women on Telegram and to steal millions of dollars from companies by mimicking their executives’ voices on the phone.

In most of the world, the authorities can’t do much about it. Even as the software grows more sophisticated and accessible, few laws exist to manage its spread.

China hopes to be the exception. This month, the country adopted expansive rules requiring that manipulated material have the subject’s consent and bear digital signatures or watermarks, and that deepfake service providers offer ways to “refute rumors.”

But China faces the same hurdles that have stymied other efforts to govern deepfakes: The worst abusers of the technology tend to be the hardest to catch, operating anonymously, adapting quickly and sharing their synthetic creations through borderless online platforms. China’s move has also highlighted another reason that few countries have adopted rules: Many people worry that the government could use the rules to curtail free speech.

But simply by forging ahead with its mandates, tech experts said, Beijing could influence how other governments deal with the machine learning and artificial intelligence that power deepfake technology. With limited precedent in the field, lawmakers around the world are looking for test cases to mimic or reject.

“The A.I. scene is an interesting place for global politics, because countries are competing with one another on who’s going to set the tone,” said Ravit Dotan, a postdoctoral researcher who runs the Collaborative A.I. Responsibility Lab at the University of Pittsburgh. “We know that laws are coming, but we don’t know what they are yet, so there’s a lot of unpredictability.”

Deepfakes hold great promise in many industries. Last year, the Dutch police revived a 2003 cold case by creating a digital avatar of the 13-year-old murder victim and publicizing footage of him walking through a group of his family and friends in the present day. The technology is also used for parody and satire, for online shoppers trying on clothes in virtual fitting rooms, for dynamic museum dioramas and for actors hoping to speak multiple languages in international movie releases. Researchers at the M.I.T. Media Lab and UNICEF used similar techniques to study empathy by transforming images of North American and European cities into the battle-scarred landscapes caused by the Syrian war.

But problematic applications are also plentiful. Legal experts worry that deepfakes could be misused to erode trust in surveillance videos, body cameras and other evidence. (A doctored recording submitted in a British child custody case in 2019 appeared to show a parent making violent threats, according to the parent’s lawyer.) Digital forgeries could discredit or incite violence against police officers, or send them on wild goose chases. The Department of Homeland Security has also identified risks including cyberbullying, blackmail, stock manipulation and political instability.

The increasing volume of deepfakes could lead to a situation where “citizens no longer have a shared reality, or could create societal confusion about which information sources are reliable; a situation sometimes referred to as ‘information apocalypse’ or ‘reality apathy,’” the European law enforcement agency Europol wrote in a report last year.

British officials last year cited threats such as a website that “virtually strips women naked” and that was visited 38 million times in the first eight months of 2021. But there and in the European Union, proposals to set guardrails for the technology have yet to become law.

Attempts in the United States to create a federal task force to examine deepfake technology have stalled. Representative Yvette D. Clarke, a New York Democrat, proposed a bill in 2019 and again in 2021 — the Defending Each and Every Person From False Appearances by Keeping Exploitation Subject to Accountability Act — that has yet to come to a vote. She said she planned to reintroduce the bill this year.

Ms. Clarke said her bill, which would require deepfakes to bear watermarks or identifying labels, was “a protective measure.” By contrast, she described the new Chinese rules as “more of a control mechanism.”

“Many of the sophisticated civil societies recognize how this can be weaponized and destructive,” she said, adding that the United States should be bolder in setting its own standards rather than trailing another front-runner.

“We don’t want the Chinese eating our lunch in the tech space at all,” Ms. Clarke said. “We want to be able to set the baseline for our expectations around the tech industry, around consumer protections in that space.”

But law enforcement officials have said the industry is still unable to detect deepfakes and struggles to manage malicious uses of the technology. A lawyer in California wrote in a law journal in 2021 that certain deepfake rules had “an almost insurmountable feasibility problem” and were “functionally unenforceable” because (usually anonymous) abusers can easily cover their tracks.

The rules that do exist in the United States are largely aimed at political or pornographic deepfakes. Marc Berman, a Democrat in California’s State Assembly who represents parts of Silicon Valley and has sponsored such legislation, said he was unaware of any efforts to enforce his laws via lawsuits or fines. But he said that, in deference to one of his laws, a deepfaking app had removed the ability to mimic President Donald J. Trump before the 2020 election.

Only a handful of other states, including New York, restrict deepfake pornography. While running for re-election in 2019, Houston’s mayor said a critical ad from a fellow candidate broke a Texas law that bans certain misleading political deepfakes.

“Half of the value is causing more people to be a little bit more skeptical about what they’re seeing on a social media platforms and encourage folks not to take everything at face value,” Mr. Berman said.

But even as technology experts, lawmakers and victims call for stronger protections, they also urge caution. Deepfake laws, they said, risk being both overreaching but also toothless. Forcing labels or disclaimers onto deepfakes designed as valid commentary on politics or culture could also make the content appear less trustworthy, they added.

Digital rights groups such as the Electronic Frontier Foundation are pushing legislators to relinquish deepfake policing to tech companies, or to use an existing legal framework that addresses issues such as fraud, copyright infringement, obscenity and defamation.

“That’s the best remedy against harms, rather than the governmental interference, which in its implementation is almost always going to capture material that is not harmful, that chills people from legitimate, productive speech,” said David Greene, a civil liberties lawyer for the Electronic Frontier Foundation.

Several months ago, Google began prohibiting people from using its Colaboratory platform, a data analysis tool, to train A.I. systems to generate deepfakes. In the fall, the company behind Stable Diffusion, an image-generating tool, launched an update that hamstrings users trying to create nude and pornographic content, according to The Verge. Meta, TikTok, YouTube and Reddit ban deepfakes that are intended to be misleading.

But laws or bans may struggle to contain a technology that is designed to continually adapt and improve. Last year, researchers from the RAND Corporation demonstrated how difficult deepfakes can be to identify when they showed a set of videos to more than 3,000 test subjects and asked them to identify the ones that were manipulated (such as a deepfake of the climate activist Greta Thunberg disavowing the existence of climate change).

The group was wrong more than a third of the time. Even a subset of several dozen students studying machine learning at Carnegie Mellon University were wrong more than 20 percent of the time.

Initiatives from companies such as Microsoft and Adobe now try to authenticate media and train moderation technology to recognize the inconsistencies that mark synthetic content. But they are in a constant struggle to outpace deepfake creators who often discover new ways to fix defects, remove watermarks and alter metadata to cover their tracks.

“There is a technological arms race between deepfake creators and deepfake detectors,” said Jared Mondschein, a physical scientist at RAND. “Until we start coming up with ways to better detect deepfakes, it’ll be really hard for any amount of legislation to have any teeth.”

The New York Times



Colette Kress, the CFO Who Challenged Huang’s Bets, Is Nvidia’s Interim CEO

Nvidia's Chief Financial Officer Colette Kress poses for a photo in an unknown location. (Nvidia/Handout via Reuters)
Nvidia's Chief Financial Officer Colette Kress poses for a photo in an unknown location. (Nvidia/Handout via Reuters)
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Colette Kress, the CFO Who Challenged Huang’s Bets, Is Nvidia’s Interim CEO

Nvidia's Chief Financial Officer Colette Kress poses for a photo in an unknown location. (Nvidia/Handout via Reuters)
Nvidia's Chief Financial Officer Colette Kress poses for a photo in an unknown location. (Nvidia/Handout via Reuters)

Colette Kress spent years as the one Nvidia executive willing to check CEO Jensen Huang’s enormous, often risky ambitions. As he drove the chipmaker deeper into multibillion-dollar AI investments, she pushed back, according to two people familiar with the matter on Thursday.

Now the 59-year-old finance chief has been handed the top job on an interim basis, while Nvidia searches for a permanent successor. Huang on Thursday stepped downfrom the company he co-founded and ran for three decades in a cloud of scandal, leaving Nvidia to navigate its first leadership transition without the architect of its rise.

Through their conflicts, Kress served as an important counterweight to Huang, whose success afforded him great latitude on key decisions, the two sources said. Months before news that Huang had a relationship with a woman suspected of being a Chinese spy, some on Wall Street were questioning whether his appetite for risk was sound and if the deals he struck were feeding an increasingly circular AI economy.

Kress and her ‌staff clashed with ‌Huang and the company's sales team over the massive and risky financing deals that fed into what ‌some ⁠Wall Street critics ⁠deemed a circular AI economy, including investments in OpenAI and AI infrastructure companies such as Lambda, according to one of the people familiar with the matter.

A proposed $250 billion plan to support an OpenAI data center project in Ohio was ultimately pared to $120 billion.

"I think it's unlikely anyone but Jensen is going to invest in his own customers as aggressively," said a third source, a venture capital investor. Huang has pushed Nvidia to offer financing to startups, the person said.

KRESS THE PRAGMATIST

People who know her describe Kress as a calming contrast to Huang’s often confrontational style. Kress joined Nvidia in 2013 after a long career at other tech industry giants including Microsoft, Cisco and Texas Instruments .

"Colette is a pragmatist," said a fourth source ⁠familiar with the matter. She can project calm and help stabilize markets while the search is ongoing, ‌the person said, adding that Kress had been on recent calls to reassure customers ‌and suppliers as the tumult inside the company unfolded.

Under her leadership, Nvidia is likely to "approach DC more like other tech companies do, by trying to ‌build capital and make friends," instead of picking "a fight over export controls" the way it did under Huang's leadership, the person said.

But ‌many investors, analysts and industry sources who spoke to Reuters questioned whether a finance executive could preserve the technological risk-taking that turned Nvidia into an AI chips powerhouse.

"Putting (Kress) in the interim role makes sense to keep the markets calm, but I don't think she is the long-term visionary that Nvidia needs to continue its current trajectory," said Anshel Sag, principal analyst at Moor Insights and Strategy.

Nvidia shares slumped 14% to their lowest in nearly 16 months on Thursday ‌after the company said Huang would step down, but pared losses to close down 4.3%.

Whether Kress will keep the CEO role permanently is yet to be decided. But other names have surfaced, ⁠including Nvidia executive Ian Buck, who ⁠helped launch AI on Nvidia chips and led development of the CUDA software system. AMD CEO Lisa Su as well as Arm boss Rene Haas have also been speculated as potential candidates.

WHAT DID KRESS KNOW?

Questions are also swirling about how much Kress knew about Nvidia's chip sales and Huang's affairs. China has denied the spying allegations. Reuters was not able to contact Alice Huang for comment.

A fifth source said Kress knew about his relationship with Kimberly Powell, Nvidia's vice president of healthcare, who reported to him. Nvidia and Powell did not immediately respond to requests for comment.

Sunny Cheung, an analyst at the Washington-based Jamestown Foundation, said Kress could face congressional questions about the company's oversight of chip sales involving Chinese military-linked institutions and Southeast Asian intermediaries.

In a 2023 interview with an Israeli publication, Kress credited her two young sons with urging her to join Nvidia in 2013 because they knew its chips from their video games.

She became a billionaire in 2025 based on the value of her Nvidia equity, according to media reports, and Forbes said her net worth of $1.2 billion in mid-2026 put her in 32nd place on its list of America's richest self-made women.

Kress, who holds an undergraduate degree in finance and an MBA, was also named among the 50 most powerful women in business on rankings compiled by Fortune and Forbes magazines in recent years.


Jensen Huang Built the Company That Powers AI. Now Nvidia Must Find a Way Forward without Him

Nvidia CEO Jensen Huang walks to the office of US Senator Adam Schiff (D-CA) while meeting with lawmakers on Capitol Hill, Washington, DC, US, July 28, 2026. (Reuters)
Nvidia CEO Jensen Huang walks to the office of US Senator Adam Schiff (D-CA) while meeting with lawmakers on Capitol Hill, Washington, DC, US, July 28, 2026. (Reuters)
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Jensen Huang Built the Company That Powers AI. Now Nvidia Must Find a Way Forward without Him

Nvidia CEO Jensen Huang walks to the office of US Senator Adam Schiff (D-CA) while meeting with lawmakers on Capitol Hill, Washington, DC, US, July 28, 2026. (Reuters)
Nvidia CEO Jensen Huang walks to the office of US Senator Adam Schiff (D-CA) while meeting with lawmakers on Capitol Hill, Washington, DC, US, July 28, 2026. (Reuters)

Nvidia CEO Jensen Huang resigned Thursday, capping a spectacular downfall for a poster boy of the artificial intelligence boom whose exit following reports of extramarital affairs now thrusts the chipmaker into an uncertain future.

After a dizzying series of headlines about Huang’s infidelity and ties to an alleged Chinese spy, his departure sets off a scramble to find a permanent replacement to lead the multitrillion-dollar colossus that grew from obscurity to a perch between Apple and Microsoft at the top of the S&P index.

The resignation sent shares of Nvidia plummeting 14% at the opening bell, before stabilizing. The stock closed down about 4% Thursday as investors pondered the lawsuits, investigations, likely corporate jockeying and the resilience of a market driven by the gains of a few tech giants.

“Huang’s departure introduces uncertainty well beyond the company itself,” said Asa Hiken, senior analyst for research firm eMarketer, reflecting fears of wider implications and the possibility of an AI bubble.

The company named Colette Kress, the executive vice president and chief financial officer, as interim chief executive. She became CFO in 2013, overseeing the company’s global finance operations. Before that, she worked for three years at Cisco and spent 13 years at Microsoft.

Nvidia had no succession plan to prepare for the possibility of the departure of Huang, who was synonymous with Nvidia for more than 30 years in much the same way Steve Jobs embodied Apple. Nvidia said its board would consider internal and external candidates to replace him.

In a statement Thursday, Kress said that Nvidia’s “strength has always come from its people” and that she was “committed to building on the extraordinary foundation Jensen created over the last 33 years.”

The board of directors said Thursday it had also named its first-ever chairman, Harvey C. Jones, an entrepreneur and venture investor.

Drumbeat of scandals grew louder

Huang, 63, is one of the world’s wealthiest people, with a personal fortune that Forbes estimates at more than $150 billion. He is the single largest individual shareholder of Nvidia stock.

A drumbeat of scandals around him had grown louder in recent weeks after The New York Times reported Huang's relationship with a woman the paper said US officials had concluded was a Chinese spy who was recruited to influence California-based Nvidia to make its most advanced chips more available in China.

The discovery set off alarms as high as the White House.

US President Donald Trump said Monday that the FBI was investigating but remained complimentary of Huang on Thursday, saying he “has done a fantastic job.” Like many top tech CEOs, Huang is close to Trump, who has hosted him at the White House and on Air Force One, and awarded him a National Medal of Science.

Nvidia's board announced an investigation into the allegations on Sunday, but said it remained confident in Huang's leadership. Then pressure compounded late Wednesday after reports surfaced of another alleged affair by Huang, this time with an Nvidia employee who reported to him. Reuters reported Thursday that Huang had an intimate relationship with a second employee, citing unidentified sources.

The company has said it had “no reason to believe” that either national security or its secrets were compromised, but that its inquiry would examine all available information.

Nvidia is due to report earnings Tuesday.

Lawmakers still want to question Huang

After Huang’s exit, US lawmakers were still insisting on questioning him about his interactions with a Chinese businesswoman named Alice Huang and the company’s security protocols against espionage.

“Congress must demand answers from Mr. Huang and others at Nvidia about how they may have put US national security at risk,” Democratic Senate leader Chuck Schumer of New York posted online.

Rep. Brian Mast, chairman of the House Committee on Foreign Affairs, said the committee was in contact with Huang’s team as recently as Wednesday night after putting in an initial request for an interview on Nov. 5. Mast said Huang would receive a subpoena to compel his appearance, if necessary.

Alice Huang, the suspected spy at the center of the scandal, is a former executive at Singapore-based Megaspeed International. Jensen Huang acknowledged an affair but did not identify her.

The two are not related.

Megaspeed faced allegations last year that it was illicitly shipping advanced Nvidia computer chips into China, but in December said there was “no evidence” of such exports.

Singaporean authorities said Thursday that they questioned Alice Huang and confiscated her passport last year as part of an investigation into Megaspeed. They concluded that there wasn’t enough evidence that she had committed a crime but suspected she provided “inaccurate information” to downplay her role at Megaspeed and barred her from returning to the country.

In their statement, Singaporean authorities also complained that since September 2025, they had sought help from the US Justice Department and the FBI as part of their investigation but had received limited assistance.

China denies attempting to ensnare executive

China has denied that it attempted to ensnare Jensen Huang. Nvidia has become a leader in making chips that power AI, and Huang has lobbied Washington to loosen limits on sales of Nvidia chips to China. In January, he won Trump’s approval to sell Nvidia’s H200 chips to China.

Megaspeed said Thursday that it has cooperated with the US Commerce Department's Bureau of Industry and Security, which handles enforcement of national security restrictions on technology exports, and was ready to “cooperate fully with any other relevant US government authority.”

The company said it has hired a US law firm to conduct a “comprehensive census” of its computer chips and to verify its export controls.

“Megaspeed welcomes appropriate government scrutiny and is committed to demonstrating through concrete actions that it operates responsibly, transparently, and in accordance with applicable US laws,” it said.

Apart from questions over national security, Megaspeed’s finances also have drawn attention. Its total assets soared roughly 90-fold from late 2023 to 2024, to almost $3 billion, according to Singapore corporate records.

Revenue surged to over $294 million in 2024 from none in 2023.

What comes next for Jensen Huang is unclear, though another tech mogul, Elon Musk, said on X that it “would be an honor” to hire him.

At a time of growing alarm about AI's potential risks, Huang has been a voice of optimism on the technology’s potential. His climb to the top of the corporate world started with an idea born in an unglamorous setting.

Huang and two other engineers gathered in 1993 at a Denny’s in San Jose, California, where they discussed building a computer chip that would make graphics for video games faster and more realistic.

That conversation led to the founding of Nvidia.


Fallout from the Nvidia Scandal May Dampen the Exuberance Around the AI Boom

 A worker stands with an Nvidia umbrella outside of the Nvidia headquarters in Santa Clara, California, US, November 12, 2026. (Reuters)
A worker stands with an Nvidia umbrella outside of the Nvidia headquarters in Santa Clara, California, US, November 12, 2026. (Reuters)
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Fallout from the Nvidia Scandal May Dampen the Exuberance Around the AI Boom

 A worker stands with an Nvidia umbrella outside of the Nvidia headquarters in Santa Clara, California, US, November 12, 2026. (Reuters)
A worker stands with an Nvidia umbrella outside of the Nvidia headquarters in Santa Clara, California, US, November 12, 2026. (Reuters)

Nvidia CEO Jensen Huang's stunning resignation has sent ripples through the global technology industry, with rival chipmakers itching to take advantage of the uncertainty and others wondering if the downfall of one of AI's biggest cheerleaders will dampen the mood around the civilization-altering technology.

Huang, who stepped down Thursday following reports of extramarital affairs, including with a suspected Chinese spy, was the very public face of a company that dominates the market for computer chips used to train and run AI models. In March, Huang predicted Nvidia will be grappling with a $1 trillion backlog in orders for its chips by the end of the year, doubling his estimate from a year earlier.

A linchpin of the AI boom, Nvidia trades off with Apple as Wall Street's most valuable company and has invested heavily in other AI firms.

Some of Nvidia's biggest rivals, such as Broadcom, Intel and Advanced Micro Devices, saw their shares advance Thursday following Huang's departure as investors predicted that its customers will look to diversify their suppliers. In the end, analysts say, this might not be a bad thing.

“This could turn what has effectively been a monopoly into a horse race again, as competitors rush to meet growing demand,” said Bret Greenstein, chief AI officer at the global consultancy West Monroe. “Nvidia did not create that demand, and a shift in this part of the market could ultimately diversify the supply chain, create more choice for customers and strengthen the broader AI industry in the years ahead.”

Competitor chipmakers and designers see opportunity

Nvidia carved out an early lead in tailoring its chipsets known as graphics processing units, or GPUs, from use in powering video games to helping to train powerful AI systems. Demand soared as tech companies scrambled for more chips to build and run AI systems.

In annual filings, Nvidia has identified competitors including Advanced Micro Devices, or AMD, Intel, Broadcom and cloud services companies like Google, Amazon and Microsoft. While these other players are established and respected within the industry for their chips, they have been trying to catch up to Nvidia.

Nvidia has had an advantage from the start and as soon as a competitor releases something just as good, Nvidia has put out the next better chip, said Jay Aldebert, chief growth officer of International Services Inc. “Nobody’s just sitting still,” he said.

While some competitors saw bumps to their share prices Thursday, “their gains are going to be smaller than Nvidia’s losses,” said Chester Spatt, a finance professor at Carnegie Mellon University. But Spatt said he also anticipates chip purchasers could also become “much more reluctant to concentrate their purchases with a single source.”

The incident is also sure to prompt elected officials to seek stronger export controls on American-made chips, but that could be a boon for Chinese chipmaker Huawei, another Nvidia competitor. Lizzi C. Lee, a fellow at the Asia Society Policy Institute’s Center for China Analysis, said she suspects Chinese AI firms could accelerate efforts to secure overseas computing capacity ahead of tighter controls.

“Chinese chipmakers have already rallied on Nvidia’s troubles, but China’s AI developers depend heavily on Nvidia’s ecosystem,” she said. “This could be both an opportunity and a headache for China.”

Huang has had an outsized role as AI evangelist

While Huang is not the only face of AI — OpenAI's Sam Altman, Google's Demis Hassabis and Nobel Prize winner Geoffrey Hinton are among the others — he's been an influential one. A celebrity-level industry evangelist with President Donald Trump's ear and support, he has advocated for a light touch on AI regulation and has been bullish about AI’s potential to transform society, creating faster economic growth and more scientific breakthroughs.

“Jensen Huang’s resignation is a watershed moment for Nvidia, which now has to prove it can maintain its AI dominance without the leader largely responsible for building it,” said Asa Hiken, a senior analyst for research firm eMarketer. “And given the broader AI industry’s heavy dependence on Nvidia’s chips, Huang’s departure introduces uncertainty well beyond the company itself.”

Lee, of the Asia Society Policy Institute, said the resignation fallout will ripple across the AI ecosystem.

“Obviously Nvidia’s technological leadership won’t disappear, but Huang had played an outsized role as its chief strategist, dealmaker and — very importantly — political advocate, with close access to both Washington and Beijing,” she said. “This happens at a critical juncture when markets are already questioning the sustainability of massive AI spending.”

Nvidia’s ‘circular financing’ deals spread the risk

Huang’s relationships across the tech landscape translated into Nvidia’s numerous partnerships and investments into companies that purchase its chips. Colette Kress, Nvidia’s CFO turned interim CEO, has been a key force behind that strategy, but that approach is under closer scrutiny as the scandal and resignation have rattled the market.

CoreWeave, which buys Nvidia chips and then rents out access to them to customers over the cloud, closed down almost 7% on Thursday. Nvidia holds a nearly 13% stake in the company.

Leadership within companies across the tech sector likely spent much of Thursday in meetings aiming to figure out a “backup plan” for some of their financing, Aldebert said. He described the circular financing practice as “incestuous.”

Many experts will be keeping a keen eye on what Huang’s departure and its fallout mean for pending public debuts of AI companies like Anthropic’s pending IPO, valued at $1.3 trillion.

It also comes in the wake of midterm elections marked by hostility toward data centers, ushering in many Democrats promising aggressive stances on AI regulation.

“This is all very interconnected and I think that we’re going to see a lot interesting dynamics happening the next month as it plays out,” said Greenstein, of West Monroe.