Shareholders sue Nvidia, CEO Jensen Huang over affair with suspected Chinese spy

AI tech giant, Nvidia, and its chief executive officer Jensen Huang are facing a lawsuit by shareholders over Mr Huang’s infidelity with a suspected Chinese spy which threatened U.S. national security and tumbled the company’s stocks.

Exposure of Mr Huang’s extra-marital affair with Alice Huang, a top executive at MegaSpeed, headquartered in Qatar, made Nvidia lose over $230 million in valuation.

“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,” CBS quoted the lawsuit.

As the U.S. and China strive for dominance in artificial intelligence, Washington banned the sales of advanced AI chips to Beijing.

But Ms Huang’s MegaSpeed has bought over $4 billion worth of AI chips from Nvidia.

The FBI is investigating to determine whether Ms Huang bypassed the ban and exploited her romantic relationship with the Nvidia chief to facilitate transfer of the chips to China.

Mr Huang, 63, born in Taiwan, shares the same surname with the suspected Chinese spy but they are not related.

He admitted to the affair in a letter to company staff on Sunday.  He also apologised to his wife and children.

“I was unfaithful to my wife,” he said. “My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry.”

The embattled Nvidia CEO has been married to Lori for about 40 years.