I was on the leadership team of a startup that is now public, during that build something like that happened (almost exactly the same as this NVIDIA situation sans the spy stuff), there were effectively 5 of us involved in what the outcome should be and it basically came down to: me and another guy didn't want to sit on a leadership team with someone who exercised judgement that way, to the point that it was me and the other guy or affair person, so affair person was out, even tho it was very painful for the business. Also, I don't think what I just described is particularly uncommon.
this is something i am probably too european to understand...
Yeah it's insane how many people are like "bro affairs are totally normal!" (they're not) or "affairs have nothing to do with the business!" (of course they do)
Look at the NVDA stock chart. There you go! That's why affairs are relevant to business! Business is always about trust, and someone who isn't deserving of their own spouse's trust certainly isn't deserving of anyone else's.
I have worked at a larger company where the CEO did something similar and across the company all anyone could ask was "why would you do something that dumb", which is not a great way for people to feel about the person supposedly leading the company.