Nvidia scandal: chief executive's affair claims raise questions in Washington

What we know

The Financial Times reported that Jensen Huang, longtime head of the US chipmaker Nvidia, had an affair with a woman whom US intelligence reportedly believes worked for Chinese intelligence. The paper said Huang admitted the affair in a letter to company staff. Whether any espionage took place has not been established.

Company and market reaction

After publication, Nvidia's market value fell by $200 billion. The company announced an independent investigation overseen by a committee of independent board members, supported by an external legal adviser. The board said it had no reason to believe national security had been breached or company secrets revealed, but that all available information would be reviewed. Nvidia has not commented on further reports about the chief executive's relationships with subordinates.

The White House angle

President Donald Trump has commented on the case. He said the FBI is investigating and that Huang had no idea the person in question was a spy. China rejected the reports, calling them slander, and denied running any intelligence operation targeting Huang.

Further reports and a lawsuit

Reuters, as reported by Rzeczpospolita, said Huang also had an intimate relationship with another subordinate. The agency did not name the woman and said it had not been able to reach her. According to PolsatNews, which cites Reuters, shareholders have sued Huang for concealing a relationship with a person suspected of working with Chinese intelligence. The lawsuit is expected to form part of a wider inquiry into whether Huang was a target of foreign intelligence activity.

The case is ongoing, and further findings could change the picture.