Nvidia hires US law firm to investigate alleged Chinese spy affair involving CEO Jensen Huang

Nvidia has hired a major US law firm to investigate allegations that a woman linked to CEO Jensen Huang was working as a Chinese spy, according to the BBC. The move follows Huang's admission of an affair with the woman, identified in reports as Alice Huang, which has triggered intense scrutiny of the AI chipmaker's leadership.

The affair has become a national security concern because of Huang's close relationship with Trump. The Guardian reported that Trump said the FBI "is looking into it," while Silicon Valley figures including Elon Musk publicly defended Huang after he acknowledged the relationship. The lack of public information about Alice Huang has fuelled claims she is a Chinese intelligence asset, though China has denied the spying allegations.

Investors reacted sharply. Nvidia's market value tumbled and its shares hit a seven-month low after the investigation was launched, according to The Guardian. The company is the world's most valuable, making the controversy a significant event for technology markets and for US-China tensions in the semiconductor sector.

The episode places Huang, the public face of the AI boom, under unprecedented pressure as US authorities examine the matter. For investors, the key question is whether the investigation escalates into a broader legal or regulatory threat to Nvidia's leadership. The stock's slide reflects concern that the affair could distract management or damage the company's standing in Washington at a time when AI chip policy is a central national security issue.