What could the legal fallout be for Nvidia, Jensen Huang and the board after affair scandal?

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It has sparked a probe by the FBI, calls for congressional hearings and a proposed investor class action lawsuit

Reports that Jensen Huang, the co-founder of AI powerhouse Nvidia, had an extramarital affair with a company executive and ties to a suspected Chinese spy have led to his resignation as CEO and sparked an investigation by the FBI, calls for congressional hearings, a review by the company’s independent directors and a proposed investor class action lawsuit.

Below is a look at the potential legal exposure for Huang, Nvidia and the directors of the company, which dominates the global market for computer chips that power the AI economy.

The New York Times reported last month that Huang had a relationship with Alice Huang, an unrelated former executive of Singapore-based company Megaspeed, whom U.S. authorities investigated and concluded was a Chinese intelligence asset. Megaspeed has faced U.S. scrutiny over suspicions that it helped Beijing gain access to Nvidia’s advanced AI chips whose export to China is restricted.

On Nov. 8, Nvidia’s Huang admitted he was unfaithful to his wife without providing details about the relationship, which led to a drop in Nvidia’s stock price. U.S. President Donald Trump said Huang told him that he had no idea that the woman was a spy and Huang has not been accused of criminal wrongdoing.

Reuters could not independently verify the intelligence allegation, which China’s foreign ministry has said was “groundless,” nor has it verified Alice Huang’s current employment status with Megaspeed.

Nvidia has said its board has “no reason to believe” U.S. national security or company secrets were affected, though an independent committee of directors will review all available information and hired the Wachtell, Lipton, Rosen & Katz law firm to assist it.

On Wednesday, the New York Times reported that Huang had also had an extramarital affair with a company executive who reported to him. Reuters could not verify the report. Nvidia announced on Thursday that Huang had resigned.

Nvidia sits at the centre of the technological rivalry between the United States…

مطلع المقال، مقتطف من The Globe and Mail (Report on Business). لقراءة المقال كاملًا، افتحه على موقع الناشر.