Nvidia shares slide as board probes CEO over China spy reports

Nvidia, a leading AI chip manufacturer, faced turmoil on Monday after its CEO, Jensen Huang, admitted to having an extramarital affair. Reports suggest that the woman involved, Alice Huang, a Chinese executive linked to Singapore-based data center company Megaspeed, may have been spying for China. Beijing dismissed the allegations as baseless, but Nvidia's shares plummeted, dropping more than four percent after initially falling nearly nine percent earlier in the day.

Alice Huang, also known as Huang Le, had developed a close relationship with Jensen Huang, according to The New York Times. In a message to Nvidia employees, Jensen Huang admitted to his infidelity, expressing deep regret for his actions. US President Donald Trump, when asked about the situation, stated that he had no knowledge of Huang's alleged espionage.

The Nvidia board initiated an independent investigation after receiving reports of a foreign intelligence effort targeting the CEO. While the board believes there is no evidence of compromised national security or Nvidia secrets, the inquiry will examine all available information. China is in a fierce competition for technological supremacy with the United States, which imposes strict limits on exporting advanced silicon chips to China.

Nvidia, a global leader in producing chips crucial for AI model training and operation, is one of the world's most valuable companies.