E-Paper
Nvidia CEO Jensen Huang Case LIVE: Jensen's ties with ‘spy’ facilitated $7.5 billion chips to China, says report
NVIDIA CEO Jensen Huang Case LIVE: A report alleges Jensen Huang's links to a Chinese woman suspected of spying for Beijing helped facilitate $7.5 billion in Nvidia chip shipments to China. Shareholders have sued Huang and Nvidia, accusing them of withholding information about the alleged links.
Nvidia CEO Jensen Huang is facing fresh scrutiny after a report alleged that his relationship with a Chinese businesswoman suspected of spying for Beijing helped facilitate the shipment of at least $7.5 billion worth of the company's chips to Chinese firms....Read More
According to a report by The Information, citing two people familiar with the woman, Alice Huang, along with her husband and sister, built a network of companies across China and Singapore to procure Nvidia chips.
At the centre of the network was Shanghai Century Litong, a China-based company established in June 2023. The company secured preferred cloud partner status with Nvidia by October that year, giving it priority access to the chipmaker's products, the report said.
When orders for Nvidia chips restricted under US export controls faced delays, Alice Huang allegedly leveraged her connections with Nvidia and its distributors to secure supplies. The network reportedly helped move around 240,000 H100, H200 and A100 chips into China.
Nvidia CEO, company sued by shareholders
Adding to the controversy, a US-based law firm has filed a class-action lawsuit against Huang and Nvidia, accusing them of misleading shareholders by failing to disclose information about the CEO's alleged links to the woman suspected of spying for China.
Rosen Law Firm said, according to AFP, that the lawsuit was filed in a California federal court on Monday. It alleges that Huang and Nvidia withheld information about the national security concerns surrounding his relationship with the woman, and that their statements artificially inflated the company's share price.
Trump says FBI investigating allegations
US President Donald Trump said on Monday that the FBI was looking into allegations surrounding Huang's relationship with the Chinese businesswoman.
Trump, who described himself as being amazed by the claims against the Nvidia chief, said he had spoken to Huang, who told him he was unaware that the woman was allegedly working as a spy for Beijing.
"I know the FBI is looking into it," Trump said, adding that he believed Huang would be "in good shape".
Nvidia CEO Jensen Huang Case LIVE: Will Nvidia remove Jensen Huang as CEO?
Nvidia CEO Jensen Huang Case LIVE: Analysts reportedly say there is a chance that Huang may be removed as CEO after the investigation. "There is clearly risk as discussed that Jensen could be removed as CEO depending on the board investigation and this will add risk to the stock as he is so important to the Nvidia story and strategy globally," Dan Ives, a partner and analyst at investment bank Yorkville Ives, told The Guardian.
However, removing Huang is easier said than done. Ives said the Nvidia CEO was not easily replaceable and no other person in the management shared his vision that shaped the company for more than three decades. He also highlighted that his family also have leadership roles at the firm, which could complicate a final decision.
Nvidia CEO Jensen Huang Case LIVE: Jensen's alleged ties with ‘spy’ facilitated $7.5 billion chip to China, says report
Nvidia CEO Jensen Huang Case LIVE: Nvidia CEO Jensen Huang's affair with a Chinese businesswoman alleged to be a spy for Beijing facilitated the shipment of at least $7.5 billion worth of the company's chips to Chinese firms, The Information reported on Tuesday, citing two people who know her.
Alice Huang, along with her husband and sister, built a network of companies across China and Singapore to acquire Nvidia chips, according to the report. (Reuters)
