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Pressure on Nvidia CEO after alleged spying scandal

Nvidia CEO Jensen Huang is facing increased pressure after an alleged intimate relationship with a woman suspected by US intelligence services of being a Chinese spy. US President Donald Trump said the FBI was investigating Huang after Nvidia began an internal investigation, while shareholders filed a lawsuit alleging that Huang and the company had misled them by concealing the relationship. Huang continues to lead Nvidia, described as the world’s second-most valuable company.

The episode has also drawn attention to Nvidia’s dependence on Huang, who has led the company for more than 30 years and is widely viewed by investors as its driving force. The company’s public filings do not set out a specific succession plan, and Nvidia is the only one of the largest US companies without a board chair separate from its CEO, according to the account. Huang owns 3.6% of Nvidia and has no shares with special voting rights, meaning he could theoretically be replaced, although investors are said to fear that his departure would damage the company. His daughter and son hold senior positions at Nvidia, but it is unclear whether either is intended to succeed him.

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Nvidia investigation into Jensen Huang’s relationship and espionage allegations

15 sources

Nvidia launched an independent investigation after reports that chief executive Jensen Huang had a romantic relationship with a woman whom US intelligence suspects was recruited by Chinese intelligence to obtain information about him. Huang acknowledged to the board that he had been unfaithful to his wife and said he would cooperate with the inquiry. Nvidia said it had no reason to believe that company secrets or US national security had been compromised, and Huang remains chief executive. President Donald Trump supported Huang remaining in the role; in one report, Trump also said the FBI was investigating the case. Nvidia shares initially fell about 8 percent, a decline reported as wiping more than $350 billion from its market value, before recovering part of the loss. They closed down 4.3 percent, according to later reports. A class-action lawsuit was filed against Nvidia and Huang, alleging that shareholders were misled because the relationship was not disclosed.