The most expensive betrayal of our time can cost 250 billion dollars. That's how much Nvidia is at risk of losing over its CEO's affair with an alleged Chinese spy. Shares of the technology giant fell by almost 5% in preliminary trading, the US Congress demands an explanation, and the scandal reached Donald Trump. What is known at this point.
63-year-old Nvidia CEO Jensen Huang was in close contact with Chinese businesswoman Alice Huang. The American intelligence agencies suspect the woman of working for Chinese intelligence and collecting classified information. She previously worked for the Singapore company Mega Speed, which is suspected of circumventing US restrictions on the supply of artificial intelligence chips to China.
After the publications, Huang admitted that he cheated on his wife, whom he met at the age of 17. They have been married for over 40 years. The CEO apologized to his family and employees, and Nvidia's board began an independent investigation into a possible leak of confidential developments.
The US Congress became interested in the scandal. Three House committees requested a closed-door briefing from Huang on Nov. 18 to examine whether Chinese intelligence may have accessed U.S. technology. Donald Trump called the head of Nvidia a decent person, although, according to media reports, the president was warned about Huang's suspicious connections last year. The businessman's daughter, who also works at Nvidia, canceled her trip to South Korea.
Amid the investigation, Huang's future at the helm of a company worth about $4.5 trillion has been called into question. A nearly 5% drop in the stock in premarket trading on Nov. 9 means a potential loss of about $250 billion in capitalization.
Nvidia says there is currently no reason to believe that US trade secrets or national security have been compromised. Huang remains CEO, and China denies the spying allegations.
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