Nvidia CEO Jensen Huang’s participation in President Donald Trump’s delegation to next week’s Asia-Pacific Economic Cooperation summit in China is now in doubt, the South China Morning Post reported, as a shareholder lawsuit was filed in federal court accusing the chipmaker and its CEO of misleading investors about Huang’s relationship with an alleged Chinese spy.
The lawsuit, filed in federal court in San Jose, California, alleges that Huang and Nvidia failed to disclose that Huang’s alleged affair with Alice Huang, a former executive of Singapore-based Megaspeed, raised national security concerns that threatened Nvidia’s reputation and business prospects, according to Politico. The suit also claims the nondisclosure artificially inflated Nvidia’s share price and may have violated federal securities laws.
Huang had been in talks to join Trump on the trip to China, but his participation is now in doubt after he admitted the affair last weekend and Nvidia launched an independent investigation, the South China Morning Post reported, citing sources. Tesla and SpaceX CEO Elon Musk and Mastercard’s Michael Miebach are among other executives expected to travel with Trump; all three accompanied Trump on his state visit to Beijing in May.
Nvidia shares fell 3.2% on Monday, cutting the company’s valuation by almost $200 billion to $4.3 trillion.
Trump told reporters on Monday that he asked Huang about the matter and Huang “said he had absolutely no idea that the person in question was a spy.” Trump said the FBI was looking into the case. “I know the FBI is looking into it in terms of something else,” Trump said at a news conference.
Three Republican House committee chairmen, China Select Committee Chairman John Moolenaar, Foreign Affairs Committee Chairman Brian Mast and Intelligence Committee Chairman Rick Crawford, sent a request to Huang for a closed-door joint briefing, writing that “recent reports raise significant national security concerns regarding the [People’s Republic of China]’s access to sensitive U.S. technology and information.”
US Senator Chris Coons, a Democrat, called for a congressional investigation on X, saying: “I’m pushing to investigate Jensen Huang and Nvidia to determine whether our national security was compromised.”
Beijing has denied the allegations. “The so-called Chinese spy narrative is purely a groundless accusation, slander, and a smear,” Chinese Foreign Ministry spokesperson Guo Jiakun said.
On Sunday, Huang admitted the affair in a letter to Nvidia employees, also published as a press release. “I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry,” he wrote. He did not name Alice Huang but linked his infidelity to “the national security concerns raised in news reports.” Nvidia’s board has initiated an independent investigation, and Huang said he would cooperate fully.
The US and Singapore have both investigated Megaspeed over suspicions the firm illegally diverted restricted Nvidia chips to China. Megaspeed denies wrongdoing. The New York Times first reported that Alice Huang was a spy for China’s Ministry of State Security, according to people briefed on a memo circulated in the Trump administration in the spring.
Two law enforcement sources confirmed to CBS News on Monday that the Justice Department’s National Security Division is investigating Megaspeed over potential violations of US export restrictions on advanced AI chips.
Analysis
Why This Matters
- The scandal threatens the leadership of the CEO most synonymous with the AI boom, at a company worth over $4 trillion that dominates the market for chips essential to artificial intelligence.
- Huang’s place on Trump’s APEC delegation being in doubt signals potential disruption to US-China trade diplomacy and Nvidia’s efforts to re-enter the Chinese market.
- Congressional investigations and a shareholder lawsuit raise the stakes for Nvidia’s board, which now faces questions about succession, export controls, and national security vulnerabilities.
Background
Nvidia, founded in 1993 by Jensen Huang and two fellow engineers, grew from a graphics-card maker into the world’s most valuable chip company by powering the AI revolution. Huang, 63, is also president, a board member and the public face of the company. Since October 2022, when the US first imposed sweeping export controls to limit China’s access to advanced chips, Nvidia has seen its China business shrink from nearly a quarter of revenue to about 8% in its most recent quarter. Huang has been a close ally and informal adviser to President Trump, pushing for looser restrictions on chip sales to China. In December, Trump said Nvidia could ship its H200 chips to China with a 25% US cut of sales.
Key Perspectives
Jensen Huang (Nvidia CEO): Admitted the affair and apologised, said he had no idea Alice Huang was a spy, pledged full cooperation with Nvidia’s independent investigation.
President Donald Trump: Said Huang told him he had no idea the person was a spy; said FBI is looking into it; backed Huang staying as CEO: “I think so. Oh yeah, sure.”
Republican House chairmen (Moolenaar, Mast, Crawford): Requested a closed-door briefing, citing “significant national security concerns” over PRC access to US technology.
Senator Chris Coons (D-Delaware): Called for a congressional investigation to determine whether national security was compromised.
Chinese Foreign Ministry spokesperson Guo Jiakun: Called the spy allegation “a groundless accusation, slander, and a smear.”
Megaspeed: Denies wrongdoing, says inspections found no evidence of export violations.
What to Watch
- Whether Huang attends the APEC summit or formally withdraws from the delegation.
- Nvidia’s board investigation timeline and whether it releases interim findings or imposes any leadership changes.
- Congressional committee briefing and whether lawmakers advance new legislation tightening oversight of chip export licenses.
Checked
12 claims in this story checked against 4 sources: 11 supported.
Show each claim
- SupportedJensen Huang’s participation in Trump’s delegation to next week’s APEC summit in China is in doubt.Business | The Guardian: “Nvidia chief Jensen Huang had been in talks to join Trump on the trip, but his participation is now in doubt after he admitted his affair last weekend and Nvidia launched an investigation.”
- SupportedA shareholder lawsuit was filed against Nvidia and Jensen Huang.Moneywatch - CBSNews.com: “The Rosen Law Firm said it had filed a class-action lawsuit in federal court in San Jose, California, accusing Huang and AI behemoth Nvidia”
- SupportedTrump said the FBI was looking into a matter involving an alleged spy.Business | The Guardian: “Trump also told a news conference that the US Federal Bureau of Investigation was involved in the case, saying: “We’ll look into it. I know the FBI is looking into it in terms of something else.””
- SupportedThree House committee chairmen requested a closed-door joint briefing from Huang.AI News & Artificial Intelligence | TechCrunch: “Three Republican congressmen — Chairman John Moolenaar of the House Select Committee on China, Chairman Brian Mast of the House Foreign Affairs Committee, and Chairman Rick Crawford of the House Permanent Select Committee on Intelligence — sent a request to Huang for a closed-door joint briefing with their three committees.”
- SupportedThe lawsuit alleges that Nvidia and Huang failed to disclose that the alleged affair raised national security concerns threatening Nvidia’s reputation and business prospects.Business | The Guardian: “the defendants misled shareholders about Huang’s alleged affair with Alice Huang, a former executive of Singapore-based Megaspeed, and did not disclose that the matter raised national security concerns that threatened Nvidia’s reputation and business prospects.”
- Partly supportedNvidia shares fell 3.2% on Monday, cutting the company’s valuation by almost $200 billion to $4.3 trillion.Business | The Guardian: “Nvidia’s share price took a knock yesterday – falling by 3.2% and cutting the company’s valuation by almost $200bn, to $4.3tn.”
- SupportedTrump said Huang told him he had “absolutely no idea that the person in question was a spy.”Business | The Guardian: ““I asked him [Mr Huang] about that and he said he had absolutely no idea that the person in question was a spy.””
- SupportedTrump said at a news conference: “I know the FBI is looking into it in terms of something else.”Business | The Guardian: ““We’ll look into it. I know the FBI is looking into it in terms of something else.””
- SupportedThe committee chairmen wrote that recent reports raised significant national security concerns about China’s access to sensitive US technology and information.AI News & Artificial Intelligence | TechCrunch: ““Recent reports raise significant national security concerns regarding the [People’s Republic of China]’s access to sensitive U.S. technology and information,” the chairmen wrote .”
- SupportedCoons said: “I’m pushing to investigate Jensen Huang and Nvidia to determine whether our national security was compromised.”Business | The Guardian: “I’m pushing to investigate Jensen Huang and Nvidia to determine whether our national security was compromised. We need answers about the relationship between AI billionaires and the Trump administration, who’s making these decisions, and who’s really got their hand on the wheel.”
- SupportedGuo Jiakun said: “The so-called Chinese spy narrative is purely a groundless accusation, slander, and a smear.”Latest Science news: ““The so-called Chinese spy narrative is purely a groundless accusation, slander, and a smear,” Chinese Foreign Ministry spokesperson Guo Jiakun said.”
- SupportedHuang wrote: “I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry.”AI News & Artificial Intelligence | TechCrunch: ““I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry.””
