Nvidia shares fell 4% in pre-market trading Monday after the company announced a board investigation into CEO Jensen Huang over alleged ties to a Chinese espionage operation. The probe follows Financial Times reporting that US intelligence believes Huang had a romantic relationship with Alice Huang, an executive at Singapore-based Nvidia customer Megaspeed, who was allegedly recruited by China's Ministry of State Security (MSS).
The 63-year-old CEO apologized to employees and family, pledging cooperation with the investigation led by independent directors and an external law firm. Nvidia stated it has "no reason to believe that either national security or Nvidia secrets were compromised."
The scandal arrives at a critical moment for the $5tn chipmaker and the broader AI sector, which faces political backlash and investor skepticism over massive infrastructure spending. Huang, a key figure in the AI boom, has cultivated a close relationship with President Donald Trump, lobbying for relaxed export controls on advanced chips to China. Trump defended Huang Sunday, calling him an "honourable guy" who has done an "amazing job" for the US.
The investigation was disclosed just before Trump's May summit with Xi Jinping in Beijing. Nvidia previously dismissed concerns about Huang's interactions with Alice Huang as "nothing unusual" for a customer relationship.
Source: Financial Times Companies · Summarized by HeadlinesBriefing