Investors sue the wife of the head of Nvidia
Investors filed a class action lawsuit against Nvidia and its CEO Jensen Huang, in which they are accused of deceiving shareholders by concealing the businessman’s ties with the head of Megaspeed, Alice Huang, which American intelligence agencies believe was recruited by the Ministry of State Security of China.
Investors filed a class action lawsuit against Nvidia and its CEO Jensen Huang, in which they are accused of deceiving shareholders by concealing the businessman’s ties with the head of Megaspeed, Alice Huang, which American intelligence agencies believe was recruited by the Ministry of State Security of China. That's according to Reuters.
According to the lawsuit, the defendants misled shareholders about Huang's alleged love affair with Alice Huang. Shareholders were also unaware that the story raised national security concerns and threatened Nvidia’s reputation.
Megaspeed is building data centers in Southeast Asia, leasing capacity to Chinese Alibaba. The network of companies associated with Alice Huang is concentrated in Shanghai and Zhejiang province. According to the NYT, the structure has financial ties with the Chinese military through investments in a subsidiary of cybersecurity China Electronics Technology Group, one of the largest manufacturers of military equipment in China.
Nvidia is an American technology company, one of the world’s largest developers of graphics processors (GPUs) and chips for artificial intelligence systems. Huang founded it in 1993. Nvidia ranked second in the world with a market value of about $4.51 trillion.
Huang was suspected of having "close ties" with the head of Megaspeed in early November. According to the Financial Times, the couple had not just close contacts, but a romantic relationship.
Huang admitted adultery.
