Nvidia loses $220 billion after board opens internal probe
By the AFREEQUE newsroom, based on ThisDay
Nvidia’s board has opened an independent investigation into its chief executive Jensen Huang, over his relationship with an executive at Megaspeed whom Washington suspects of espionage. The stock fell more than 4%, wiping out about $220 billion in market capitalisation, according to ThisDay. Beijing denies any espionage activity and denounces a smear campaign.
The board of Nvidia has opened an independent investigation into its chief executive, Jensen Huang, according to a company statement reported by ThisDay. The stock fell more than 4% on Monday, to about $178, wiping out almost $220 billion in market capitalisation.
A committee of independent directors, assisted by external advisers, is to determine whether Mr Huang was targeted by foreign intelligence operations. The board says it has no reason to believe national security or the company’s trade secrets have been compromised. In an internal message sent to employees on Sunday, Jensen Huang, 63, co-founder of Nvidia in 1993, admits to having been unfaithful to his wife: "I deeply apologise for it."
According to The New York Times, the woman concerned, Alice Huang, also known as Huang Le, runs a business unit at Megaspeed, a data centre operator based in Singapore. The two are not related. In two years Megaspeed has become one of Nvidia’s largest customers in Southeast Asia, with purchases estimated at more than $4.8 billion. US authorities are examining whether chips sold to the company were diverted to China, in breach of export controls.
This investigation follows the revelation of Jensen Huang’s relationship with a figure close to Beijing, whose espionage implications China has denied, describing them as a smear campaign, as reported in Beijing rejects espionage accusations against Nvidia.
