Shares in US artificial intelligence giant Nvidia experienced a downward slide on Sunday after the company's board announced an independent investigation into CEO Jensen Huang. The inquiry follows media reports alleging that Huang was the target of a foreign intelligence effort involving a suspected Chinese spy.
Initially, Nvidia's stock plunged by as much as 8% following the news before recovering some ground to trade about 4% lower than Friday's closing price. The investigation centers on reports that Huang had a romantic relationship with Alice Huang, a top executive at customer firm Megaspeed and a Chinese citizen whom US intelligence officials believe was gathering information for Beijing's Ministry of State Security.
In a letter to employees, Jensen Huang admitted to being unfaithful to his wife, taking full responsibility for actions that he stated hurt his family. He has committed to fully cooperating with the board's review.
Nvidia stated that its board currently has no reason to believe that company secrets or US national security were compromised, but emphasized that the inquiry will examine all available information. Meanwhile, political reactions have varied: US President Donald Trump defended Huang as an honorable figure who has done an amazing job for the country, while the Chinese government dismissed the allegations as a smear intended to malign China.
