Nvidia turmoil deepens as Huang affair, spy claims draw lawsuits and probes

· Tech · United States · Taiwan

Nvidia and CEO Jensen Huang were accused in a California lawsuit of misleading shareholders over the affair with Alice Huang, a Chinese businesswoman at the center of a suspected espionage scandal. The company has hired a major US law firm to investigate, and Nvidia shares have fallen for two days, with investors weighing whether Huang can survive politically. President Trump said the FBI is investigating and that Huang told him he did not know his paramour was a spy, contradicting reports that Trump had been briefed on the matter before his China trip. Lawmakers in both parties want to hear from Huang, and the Commerce Department has delayed blacklisting Megaspeed, the Singapore-based Nvidia customer where Alice Huang formerly worked. Alice Huang is reportedly about 42 and previously worked in banking and investment management, according to fund industry records. The affair has also complicated Nvidia's long-running effort to sell AI chips to China: the company has hired a major US law firm to conduct the internal investigation. It is still scheduled to appear at its GTC event. Analysts say the chipmaker's underlying business remains strong even as the stock wobbles.

Why it matters：Nvidia sits at the center of the global AI build-out, so questions about its CEO's judgment and security ties affect supply chains, markets and US-China tech policy.

Key points

  • A California lawsuit alleges shareholders were misled about the affair.
  • The FBI is investigating; Trump says Huang denied knowing the woman was a spy.
  • Megaspeed, where Alice Huang formerly worked, has not been blacklisted.

Sources (original reporting)

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