Nvidia CEO Jensen Huang Faces Shareholder Lawsuit Over Alleged Affair With Accused Chinese Spy

Tech executive Jensen Huang encountered new challenges as shareholders filed a lawsuit against him and Nvidia, his company, alleging deceptive practices related to his alleged affair with an accused Chinese spy.

The Rosen Law Firm announced it has launched a class-action lawsuit in San Jose, California, aiming at Huang and Nvidia for not informing shareholders about the Nvidia CEO’s connections with the woman who allegedly funneled information to Beijing.

As reported by The New York Times last month, Taiwanese-born Huang cultivated a relationship with Alice Huang. She is a Chinese executive involved with Singapore-based Megaspeed, a company that purchases AI chips from Nvidia. However, she has no familial ties to the 63-year-old CEO.

Nvidia confirmed it initiated an independent investigation focusing on Huang.

Two law enforcement sources informed CBS News of the Justice Department’s National Security Division investigation into Megaspeed. The probe examines potential infractions regarding U.S. export restrictions on advanced AI chips.

Nvidia’s stock encountered a downturn as the board probed reports of Huang being potentially targeted by a foreign intelligence effort. Beijing dismisses the accusations. Given the U.S.-China rivalries over technological supremacy, the United States curtails advanced silicon chip exports to China.

Nvidia, renowned for its AI model chips, ranks among the globe’s most valuable enterprises. The shareholder lawsuit alleges Huang and Nvidia obscured national security implications his affair raised. Their statements allegedly “artificially inflated” the Nvidia share price.

The lawsuit claims: “As a result of Defendants’ wrongful acts and omissions, and the precipitous decline in the market value of the Company’s securities, Plaintiff and other Class members have suffered significant losses and damages.”

Huang acknowledged wrongdoing to Nvidia employees, admitting unfaithfulness to his wife, expressing his deep regret: “My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry,” he conveyed.

Huang stands as a pivotal figure in AI’s rapid development and serves informally as an advisor to President Trump, who traditionally opposed increased industry regulation. This stance aims to prevent China from gaining an edge.