Why NVIDIA CEO Jensen Huang is being probed by FBI
What's the story
The Federal Bureau of Investigation (FBI) is probing NVIDIA CEO Jensen Huang's alleged affair with a suspected Chinese spy. The news comes after a New York Times report claimed Huang had a close relationship with Alice Huang, a former executive at Singapore-based tech firm Megaspeed. The report further alleged that she was gathering information for Beijing.
Company response
NVIDIA launches independent investigation
In light of the allegations, NVIDIA has launched an independent investigation to determine if Huang was the target of a foreign intelligence effort.
The company, which is a major player in the AI boom and one of the most valuable public companies globally, said NVIDIA has "no reason to believe that either national security or NVIDIA secrets were compromised."
Affair admission
I had no idea she was a spy: Huang
Huang has admitted to an extramarital affair with a business executive and apologized to his wife and NVIDIA in an open letter on the company's website.
He didn't name the woman involved but clarified that he had no idea she was a spy.
"I love our country and our company. I am committed to protecting NVIDIA and supporting America's national security," Huang said in his letter.
Lawsuit filed
Proposed class action lawsuit filed against NVIDIA by shareholders
Most analysts don't expect Huang to step down, given his pivotal role in the AI trade.
However, some shareholders have filed a proposed class action lawsuit against NVIDIA.
They accuse the company of defrauding investors by hiding Huang's connections to the suspected Chinese spy.
This controversy has caused NVIDIA's shares to drop significantly, losing nearly $200 billion in value in a single day.