Nvidia CEO Jensen Huang is facing escalating pressure after being hit with a class-action Nvidia shareholder lawsuit on November 9 (local time), just a day after admitting to an affair with Alice Huang (Chinese name Huang Le), a woman suspected of being a Chinese intelligence operative. Suspicions surrounding Alice Huang’s mysterious disappearance and her ties to China are also deepening.
Mark Kistenmacher and other Nvidia shareholders filed the lawsuit in the U.S. District Court for the Northern District of California, alleging that Huang and Nvidia violated federal securities laws. The plaintiffs are seeking compensation for the massive financial losses they suffered. They argued that Nvidia’s stock plummeted after revelations regarding Huang’s affair with Alice and the associated national security risks came to light. On that trading day alone, Nvidia’s stock dropped 4.27% on the New York Stock Exchange, wiping out $192.1 billion (approx. 260 trillion won) in market capitalization in a single day.
Rising Suspicions Over Alice Huang and Chinese Ties
Suspicions regarding Alice continue to grow. According to the Financial Times (FT), Alice sought to attract Chinese investors for a southeast Asian data center project worth hundreds of millions of dollars early last year, alongside a business partner who serves as a director at a Chinese regional state-owned bank. During this process, she reportedly boasted that there would be no issues securing Nvidia’s advanced graphics processing units (GPUs). Alice also actively promoted the fact that Chinese e-commerce giant Alibaba was a major customer for the project.
Megaspeedβs predecessor was Seven Road International, a gaming company supported by Chinese state-owned investors, which spun off its Singapore subsidiary under the name Megaspeed in 2023. According to the New York Times (NYT), Megaspeed’s Malaysian affiliate purchased at least $4.8 billion (approx. 6.5 trillion won) worth of Nvidia semiconductors between June 2024 and last February. Based on these findings, U.S. authorities have been investigating Megaspeed under suspicion of acting as a backdoor channel for smuggling advanced U.S. semiconductors into China.
Unverified Background and Future of Jensen Huang
Skepticism surrounding Alice’s career background is also intensifying. A profile posted on a Chinese information site claims that Alice worked as a journalist for China Central Television (CCTV) and regional broadcaster Hunan TV before moving into the financial sector, holding director positions at HSBC and Shanghai Heshi Investment. However, official employment records with these companies could not be confirmed. According to the Wall Street Journal (WSJ) and other outlets, Alice became a Megaspeed executive in early 2023 and built an extensive network in the semiconductor industry by leveraging her fluent English skills despite holding Chinese citizenship.
The fallout has sparked mixed projections regarding Huang’s survival as CEO. While the NYT reported that Nvidia’s board of directors intends to investigate the allegations against Huang, it noted that subverting Huang’s heavy influence would be difficult. Four out of Nvidia’s ten board members have maintained ties with Huang since the company’s founding. Conversely, some analysts suggest that unlike other big tech companies, Huang lacks protective measures such as dual-class stock structures, meaning the board could theoretically oust him if they choose to do so. Huang currently holds a mere 3.58% stake in Nvidia.
Trump Comments on the Controversy
Meanwhile, U.S. President Donald Trump stated during a White House briefing that he had spoken with Huang over the phone. Trump remarked, “He said he had no idea the individual in question was a spy,” adding, “I believe him. He is suffering greatly,” in comments that appeared to defend Huang. However, when asked when he was first briefed on matters related to Huang, Trump responded ambiguously, saying, “There may have been mentions in intelligence reports.”
