Nvidia places CEO Jensen Huang under independent investigation over reported ties to alleged Chinese spy
Summary
Nvidia has placed chief executive Jensen Huang under an independent investigation after reports that he was the target of a foreign intelligence effort, namely a close relationship with a Chinese businesswoman who is accused of passing information to Beijing. In a statement, the company's board said it had no reason to believe that US national security or Nvidia secrets were compromised, but that its inquiry would examine all available information. Nvidia stock was down 5% in pre-market trading on November 9, and CNBC reported on November 10 that the shares sold off for a second day as investors weighed the fallout. Republican lawmakers have expressed alarm and asked Huang to give the House foreign affairs and intelligence committees a closed-door briefing next week on Nvidia's security protocols against foreign adversary espionage. A Guardian business live blog asked whether Huang could be pushed out, and quoted commentary that shareholder claims would depend on whether investors suffered losses because Nvidia failed to disclose material information.
Timeline
The Guardian
Source ↗The Guardian reports that Nvidia has placed CEO Jensen Huang under an independent investigation over a reported close relationship with a Chinese businesswoman accused of passing information to Beijing, and that Nvidia stock was down 5% in pre-market trading.
The Guardian
Source ↗The Guardian's business live blog reports that Huang's image has been shattered and asks whether he could be pushed out at Nvidia, quoting commentary that shareholder claims would depend on whether investors suffered losses from material information Nvidia failed to disclose.
CNBC
Source ↗CNBC reports that Nvidia shares sold off for a second day as investors weighed the potential fallout from CEO Jensen Huang's affair with an alleged Chinese spy.
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