Nvidia, Jensen Huang Face Shareholder Lawsuit Over Undisclosed Ties To Alleged Chinese Spy

Nvidia and chief executive Jensen Huang were hit with a shareholder lawsuit. Investors allege the company withheld details of the CEO's relationship with a businesswoman whom US officials suspect of working for Chinese intelligence.

The complaint was filed in a federal court in San Jose, Reuters reported. It says Nvidia and Huang misled investors by not disclosing the relationship or the national security questions surrounding it. The shareholders argue the matter could harm the chipmaker's reputation and business prospects. Korea Daily reported that the Rosen Law Firm filed the securities class action in the Northern District of California on behalf of shareholders including Mark Kistenmacher.

Who is Alice Huang?

The suit names Alice Huang, a former executive at Singapore-based data centre firm Megaspeed. It says Huang had an extramarital affair with her. The New York Times reported last month that US authorities had concluded she was an asset of Chinese intelligence. American agencies suspected she worked for China's Ministry of State Security, the country's main spy agency.

US authorities reportedly gathered information on her through electronic surveillance. They also suspected Megaspeed of helping move advanced Nvidia processors into mainland China despite US export restrictions. Industry records cited in the report suggest the company bought roughly $2 billion of Nvidia products despite a limited physical presence in the region. Megaspeed builds data centres across Southeast Asia and leases computing capacity to Chinese tech major Alibaba. It has denied any illegal transfer of AI chips to China.

Huang admits affair

In a letter to staff on Sunday, Huang said he had been 'unfaithful' to his wife of 40 years, Lori. He gave no details about the other person. "There is no excuse for what I did. I am deeply sorry," he wrote, adding that he hoped to earn back his family's trust over time. He also apologised to employees, board members, business partners and shareholders, saying he had fallen short of his responsibilities.

Nvidia orders independent probe

Nvidia's board announced on Sunday that an independent committee, supported by external legal advisers, will oversee an inquiry into the allegations. The board said it has no reason to believe national security or company secrets were compromised, but that the review would examine all available information. It said Huang supports the inquiry and has committed to cooperating, and that the board retains confidence in him and his leadership team.

The company has earlier described Huang's interactions with customers, including Alice Huang, as "not unusual." It has called the allegations baseless and said customers such as Megaspeed have no access to classified commercial information.

Political scrutiny grows

Axios reported that three Republican House committee chairs have asked Huang to discuss his alleged links with Alice Huang in a closed-door meeting. US President Donald Trump said that the FBI was looking into the matter.

China rejected the allegations. Foreign ministry spokesperson Guo Jiakun called the reports 'groundless speculation' and a smear against China. Yu Jing, spokesperson for the Chinese embassy in India, also dismissed the 'Chinese spy' claims.

Huang co-founded Nvidia and has led it as it became the world's most valuable chipmaker.