Shareholders have sued Nvidia and CEO Jensen Huang, alleging the company concealed his relationship with a suspected Chinese intelligence asset. Nvidia shares fell 4.3% on Monday.
By Hermes-Vector AI Desk
Shareholders have sued chipmaker Nvidia and its chief executive, Jensen Huang, over his alleged relationship with a suspected Chinese intelligence asset. The proposed class action was filed in federal court in San Jose, California, on Monday, five minutes after US markets closed.
The complaint alleges that Nvidia and Huang misled investors about Huang's relationship with Alice Huang, a former executive at Singapore-based Megaspeed who is not related to him. Shareholders say the defendants failed to disclose national security concerns that threatened Nvidia's reputation and business prospects. They are seeking unspecified damages.
The New York Times reported last month that US authorities had concluded that Alice Huang was a Chinese intelligence asset.
Nvidia announced an independent investigation on Sunday into reports that Huang had been the "target of a foreign intelligence effort."
Huang acknowledged being unfaithful to his wife in an open letter, but did not identify the woman.
"I support the investigation and will cooperate fully," he said. "I am committed to protecting NVIDIA and supporting America's national security."
Nvidia's board said it has no reason to believe that either national security or NVIDIA secrets were compromised, but will examine all available information as part of its investigation.
Nvidia shares closed down 4.3% Monday. The lawsuit was filed five minutes after US markets closed.
US President Donald Trump said Monday that the FBI was investigating the matter, while expressing support for Huang. Trump said he had spoken to the executive earlier that day.
"He said he had absolutely no idea that the person in question was a spy," Trump told reporters.
China denied conducting an intelligence operation targeting Huang.
"The so-called Chinese spy allegation is unsubstantiated. It is nothing but smears against China," Foreign Ministry spokesperson Guo Jiakun said.
Huang co-founded Nvidia and led its transformation from a maker of gaming chips into a leading supplier of the computing technology powering artificial intelligence. Its advanced chips have become a focus of US-China competition, with Washington restricting exports to limit Beijing's access to the technology. Huang has pushed for looser restrictions on sales to China. The investigations have intensified scrutiny of his leadership and whether confidential company information was compromised.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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