Nvidia CEO Jensen Huang faces shareholder suit over affair tied to alleged Chinese spy

Shareholders sue Huang and Nvidia

The lawsuit was filed Tuesday against Huang and Nvidia. It claims they misled shareholders about his relationship with Alice Huang, a Chinese executive described as an accused Chinese spy.

The complaint says investors experienced significant losses as the market value of Nvidia securities declined. It attributes those damages to alleged wrongful conduct and omissions by the defendants.

Megaspeed under federal investigation

The New York Times reported last month that Huang had formed a close relationship with Alice Huang. She is linked to Megaspeed, a Singapore-based data center company that purchases AI chips from Nvidia.

Two law enforcement sources told CBS News on Monday that the Justice Department’s National Security Division is examining Megaspeed. The inquiry concerns possible violations of U.S. export restrictions on advanced AI chips.

Chip exports carry strategic stakes

The United States limits exports to China of its most advanced silicon chips. The restrictions come amid competition between China and the United States for technological dominance. Nvidia is a global producer of chips used to train and run AI models, and ranks among the world’s most valuable companies. The lawsuit and investigation place the company in the midst of scrutiny involving its leadership and chip customers.

Huang expresses remorse

Huang addressed the impact of his actions on his family. He said, “My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry.”