AFFAIR, SPY ALLEGATIONS ROCK NVIDIA

A scandal involving an extramarital affair and allegations of Chinese espionage has wiped approximately $190 billion off the market value of Nvidia, the world’s leading artificial intelligence (AI) chipmaker, and triggered a shareholder lawsuit against its billionaire chief executive, Jensen Huang.

The controversy deepened Monday, 9 November, when Nvidia and Huang were sued in a proposed class action accusing them of misleading investors by concealing his alleged relationship with a businesswoman suspected of working for Chinese intelligence.

The lawsuit, filed in federal court in San Jose, California, came shortly after Nvidia shares closed 4.3 percent lower, erasing roughly $190 billion in market capitalization.

The action marks the latest escalation of a controversy that has raised questions about corporate governance, national security and the possible exposure of sensitive American technology to Beijing.

Huang, 63, acknowledged Sunday that he had been unfaithful to his wife, Lori, apologizing to his family, employees and shareholders.

“I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry,” Huang wrote in a message to Nvidia employees.

He pledged to cooperate with an independent investigation launched by Nvidia’s board of directors.

The woman at the center of the controversy is Alice Huang, a Chinese citizen and former executive of Singapore-based Megaspeed International, a company that has purchased billions of dollars worth of Nvidia chips.

The two are not related.

According to reporting by The New York Times, American intelligence authorities concluded that Alice Huang was gathering information for Beijing. Intelligence concerns reportedly centered on whether she had been recruited to obtain information about Nvidia and influence US policy on exporting advanced AI chips to China.

China’s Foreign Ministry rejected the accusations Monday, describing them as unsubstantiated attempts to smear the country.

Board launches investigation

Nvidia announced Sunday that independent directors, assisted by outside legal counsel, would examine whether Huang had been targeted by a foreign intelligence operation.

The company emphasized that it had no reason to believe its trade secrets or US national security had been compromised.

It also expressed confidence in Huang, who co-founded Nvidia in 1993 and has overseen its transformation into one of the world’s most valuable corporations.

“Today’s news will not slow Nvidia,” company spokesperson John Rizzo said, adding that Huang would continue serving as chief executive without interruption.

The shareholder lawsuit, led by investor Mark Kistenmacher, alleges that Nvidia failed to disclose information about Huang’s relationship and the associated national security concerns that could threaten the company’s reputation and business.

Washington demands answers

The scandal has also reached Capitol Hill, where senior Republican lawmakers have requested a closed-door briefing from Huang about his interactions with Alice Huang and Nvidia’s safeguards against foreign intelligence threats.

The lawmakers have asked Huang to arrange a briefing by 11 November.

The controversy comes as Washington seeks to restrict China’s access to powerful semiconductors used to develop advanced artificial intelligence systems.

Huang has advocated easing some American export restrictions, arguing that access to the Chinese market remains important to US technological competitiveness.

President Donald Trump, who has maintained close ties with Huang, defended the Nvidia chief Sunday, describing him as an honorable person while acknowledging he had not discussed the allegations directly with him.