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1. He had sex with a spy 2. He had sex with a direct report.

This isn't a story about the sex

The spy was also a customer. This is two pretty broad violations of your usual HR policies at minimum even if you remove “spy” from the equation and ignore all the sales to sketchy parties.
The spy being a customer is not an excuse -- it raises more questions as to how they passed KYC and compliance requirements to be a customer.

It's normal for B2B companies screen for this before you even get a demo.

Who's to say "know your customer" isn't to be taken in the biblical sense?
From the article's first paragraph: "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."

For a lot of people, it's about the sex. In fact if you only read the first paragraph, you'd come away thinking it was solely about the sex.

At least on HN the sentiment is more nuanced though, which is good.

The sex is quite the nuisance. Maybe in the future we'll have AI CEOs that don't have these nuisanced lifestyles.