Trump says the FBI is looking into the Nvidia matter

A shareholder complaint filed in federal court in San Jose, California, alleges that defendants misled shareholders about Nvidia CEO Jensen Huang’s alleged affair with Alice Huang. The complaint also says the defendants failed to disclose that the relationship raised national security concerns.

The suit claims Huang’s failure to disclose artificially inflated Nvidia’s share price, Politico reported. The complaint also alleges that Huang’s failure to disclose the affair could have violated federal securities laws.

The complaint says the undisclosed matter threatened Nvidia’s reputation and business prospects. The filing presents those consequences as allegations rather than established findings.

According to The Guardian, Alice Huang was a former executive of Singapore-based Megaspeed. The outlet described Alice Huang as a Nvidia customer and an alleged Chinese spy.

The Guardian also reported that Megaspeed had been accused of illicitly smuggling and diverting restricted Nvidia chips to China.

Jensen Huang admitted being unfaithful to his wife after reports of the affair. The shareholder case separately focused on what the defendants disclosed about the relationship and its national security implications.

Nvidia’s share price fell 3.2% the previous day, cutting the company’s valuation by almost $200 billion to $4.3 trillion.

Donald Trump said he asked Huang about the allegation and conveyed Huang’s response: “I asked him [Mr Huang] about that and he said he had absolutely no idea that the person in question was a spy.”

Trump also told a news conference that the US Federal Bureau of Investigation was involved in the case. He said: “We’ll look into it. I know the FBI is looking into it in terms of something else.” He did not specify the inquiry’s scope or what he meant by “something else.”

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