Affair with Chinese spy? CEO Jensen Huang to face probe; Nvidia shares slide

LOS ANGELES: Nvidia, one of the world's largest chip manufacturers, is facing an unexpected crisis following allegations of espionage involving its Chief Executive Officer (CEO), Jensen Huang. The company launched an internal investigation following reports that Huang may have been targeted by a foreign intelligence operation. In the wake of this news, Nvidia shares fell by more than six per cent during trading in Frankfurt on Monday, representing a decline of approximately $270 billion from the market valuation recorded on Friday.

The controversy was sparked by media reports suggesting that Huang maintained a close relationship with Alice—a former prominent industry figure whom US authorities suspected of passing information to Chinese intelligence. In light of this, Nvidia’s Board of Directors initiated an independent investigation to determine whether Huang had been a target of foreign intelligence operations. Although Huang provided an explanation to employees regarding this personal relationship, no further details concerning the allegations have been disclosed. China dismissed the espionage-related allegations as baseless.

Meanwhile, South Korea clarified that there will be no disruption to the supply of GPUs from Nvidia as per existing agreements. There are concerns that if the investigation drags on, it could impact investment decisions and the launch of new products. Market observers also suggest that there may be increased uncertainty regarding chip exports to China.

Meanwhile, United States President Donald Trump warned that the head of a prominent AI company would be sent to prison following complaints regarding the misuse of AI technology. However, he did not disclose the name of the individual or the company. This revelation comes amidst allegations of espionage involving Nvidia CEO Jensen Huang.