Nvidia shareholders sue Jensen Huang over alleged spy ties
Nvidia shareholders have sued the chipmaker and its CEO, Jensen Huang, over his alleged ties to a suspected Chinese spy. The case adds to scrutiny over whether sensitive information at the AI giant was compromised.
A class action lawsuit has been filed against chipmaker Nvidia and its CEO, Jensen Huang, alleging they concealed Huang's alleged relationship with a suspected Chinese intelligence asset. The complaint, filed in California federal court, claims Nvidia and Huang misled investors about Huang's relationship with Alice Huang, a former Megaspeed executive, not related to him.
Shareholders argue that the defendants neglected to disclose national security concerns that damaged Nvidia's reputation and business. They seek unspecified damages. The New York Times reported on the relationship last month, stating US authorities deemed Alice Huang a Chinese intelligence asset. Nvidia announced an independent investigation into reports of Huang being targeted by foreign intelligence.
Huang acknowledged infidelity in an open letter but did not identify his partner. He expressed support for the investigation and cooperation, emphasizing his commitment to protecting Nvidia and American national security. Nvidia shares fell 4.3% on the day. The lawsuit was filed shortly after US markets closed, and US President Donald Trump stated the FBI was investigating the matter, despite claiming he had no prior knowledge of any spy connection.
China dismissed the allegations as unsubstantiated smears against their country. Huang founded Nvidia and guided its growth from gaming chip manufacturer to a leading AI supplier. The US-China tech competition has intensified scrutiny of his leadership and the potential compromise of confidential company information.
Written by urgent.news from DW News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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