Chip boss, China spy, secret affair: What happened?

Nvidia's shares plummeted on Monday following an internal probe into allegations that CEO Jensen Huang had been targeted by foreign intelligence, raising questions about his future at the AI chipmaker. The investigation began after a media report claimed Huang had a close connection with a Chinese businesswoman believed to have passed information to Beijing.

The probe, announced on Sunday, has brought attention to Huang's future given Nvidia's position as the world's most valuable chipmaker and his pivotal role in the AI boom. Huang, a global celebrity, especially in Asia, maintains control over the company through a flat organizational structure. The fallout of the investigation impacted other countries, including South Korea, where Huang's daughter, an Nvidia executive, canceled a planned visit to Seoul for an Nvidia conference.

Nvidia's shares dropped by around 8% in early trading, erasing a significant portion of its value. The market's response suggests concern over potential disruptions to Nvidia's investment decisions or product launches, which could have wider implications for the semiconductor industry. Chinese authorities dismissed the allegations as "groundless accusations, slander, and a smear."

Notable figures, including billionaire investor Bill Ackman and Tesla CEO Elon Musk, expressed their views on the situation. Despite the turmoil, Nvidia's products are seen as difficult to replace, and the company's shares are expected to continue trading as planned.