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The fallout over Nvidia CEO JensenHuang’s affair with an alleged Chinese spy is intensifying, after the AI chipmaking firm has been hit with a shareholder lawsuit.
According to a complaint filed in federal court in San Jose, California, the defendants misled shareholders about Huang’s alleged affair with AliceHuang, a former executive of Singapore-based Megaspeed, and did not disclose that the matter raised national security concerns that threatened Nvidia’s reputation and business prospects.
The suit also claims that Huang’s failure to disclose the affair artificially inflated Nvidia’s share price, and could have violated federal securities laws, Politico reported.
Nvidia’s share price took a knock yesterday – falling by 3.2% and cutting the company’s valuation by almost $200bn, to $4.3tn.
Huang’s reputation has taken a serious knock, after he admitted being unfaithful to his wife following reports of an affair with Nvidia customer and alleged Chinese spy AliceHuang.
As Megaspeed has been accused of illicitly smuggling and diverting restricted Nvidia chips to China, the ramifications…