Nvidia and CEO Jensen Huang were sued by shareholders Tuesday over claims they misled investors about Huang’s affair with a woman accused of funneling information to China, CBS News reported.
The Rosen Law Firm said it filed a class-action lawsuit in federal court in San Jose, California. The suit alleges Huang and Nvidia failed to disclose national security concerns raised by the relationship and that their statements “artificially inflated” the company’s share price.
The New York Times reported last month that Huang developed a close relationship with Alice Huang, a Chinese executive linked to Singapore-based data center company Megaspeed, which buys AI chips from Nvidia, according to CBS.
Two law enforcement sources told CBS News that the Justice Department’s National Security Division is investigating Megaspeed over possible violations of U.S. export restrictions on advanced AI chips. Beijing has denied that Huang was the target of a foreign intelligence effort.
Nvidia’s board opened an inquiry into reports that Huang had been “the target of a foreign intelligence effort,” and the company said it launched an independent investigation. Shares fell sharply after the inquiry became public, CBS reported.
In a message to employees released Sunday, Huang admitted he had been “unfaithful” to his wife. “My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry,” he wrote.
The lawsuit’s claims have not been tested in court. Nvidia had not publicly responded to the filing in the CBS report.
Nvidia, a leader in chips used to train and run AI models, is one of the world’s most valuable companies, and Huang is a close informal adviser to President Trump. President Trump has said Huang told him he had “no idea she was a spy,” according to CBS.
Sources: CBS News. Thee Arizona Times uses AI-assisted reporting reviewed against the sources listed.
Photo: Unknown / Public domain via Wikimedia Commons.
