Nvidia shares tumble over investigation into Huang's affair with alleged Chinese spy

What the report says

Nvidia shares fell sharply after the company said it would launch an independent investigation into chief executive Jensen Huang following reports about an affair with an alleged Chinese spy. According to the BBC, the decline erased roughly $250 billion in market value and came after Huang acknowledged an extramarital relationship and said he would cooperate with the review. Nvidia said it had no reason to think its secrets or national security had been compromised, but its board said the probe was being opened because of recent reporting that Huang had been targeted in a foreign intelligence effort.

The BBC reported that US officials believe Alice Huang, also known as Huang Le, may have been working for Beijing, while China rejected the allegation and dismissed claims of Chinese espionage as unfounded. The report also said a New York Times account described a memo from Secretary of State Marco Rubio warning last spring about Huang’s ties to a Chinese spy. Alice Huang was said to have worked for Singapore-based Megaspeed, which had business dealings with Nvidia.

The controversy matters because Nvidia is central to the global AI industry and a major supplier of advanced chips in the US-China technology rivalry. Investors are watching whether the board’s inquiry could affect Huang’s role, though analysts quoted by the BBC said any impact on the company may be temporary and that removal of Huang appears unlikely without clearer evidence of wrongdoing.