By Pete Suratos
Publication Date: 2026-11-10 07:45:00
Nvidia and CEO Jensen Huang are facing a shareholder lawsuit in federal court in San Jose, adding to growing scrutiny following revelations regarding an alleged Chinese espionage connection.
The controversy centers on Huang’s personal relationship with a woman U.S. intelligence officials reportedly believe was spying for China. Huang acknowledged the affair and apologized to employees in a statement: “I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry.”
President Donald Trump stated that he spoke with Huang about the allegations and believes the CEO was unaware of the woman’s activities. “I asked him that question. Did you have any idea that she was a spy?” Trump said. “He said, ‘I had no idea that she was a spy,’ and I really believe him.”
The fallout has impacted the market, with Nvidia shares falling more than 4% amid broader concerns across the artificial intelligence sector.
“A lot of companies are watching this really closely because they either work with or straight out depend on Nvidia’s success to keep the AI momentum rolling,” said Scott Budman, NBC Bay Area business and technology reporter.
Nvidia’s board has launched an independent investigation, maintaining that the company has no reason to believe its secrets or national security were compromised. However, the shareholder lawsuit accuses Nvidia and Huang of misleading investors about dealings with a technology…
