Jen-Hsun Huang had an affair with a spy, and Nvidia’s market value wiped out $470 billion in two days

NVIDIA HUIDA’s stock price continued to decline on the 10th. Because the market is optimistic about the CEOJen-Hsun Huang Scandal with a Chinese businessman Huang Le, and the woman suspected of working for Beijingdetective Concerns about the subsequent disruption caused by the event deepened, and its market cap soared by more than US$470 billion in just two trading days.

Reuters reported that technology media The Information on the 10th, citing two people familiar with the matter, reported that the relationship between Huang Renxun and Huang Le helped facilitate the shipment of Nvidia chips worth at least US$7.5 billion to Chinese companies. The report also stated that Huang Le and Huang Renxun are not related.

HUIDA’s board of directors launched an internal investigation on the 8th. The board of independent directors reported on the 10th that they have hired former acting US federal prosecutor Joon Kim (transcription) and the well-known law firm Wachtel, Lipton, Rosen & Katz to lead the investigation.

On the other hand, the FBI has also started investigating whether 63-year-old Huang Renxun has become a target of foreign intelligence agencies. Jen-Hsun Huang admitted to staff that he was unfaithful to his wife, but did not disclose specific details of the relationship.

US President Trump said he had spoken to Huang and asked her if she knew the woman was suspected of being a Chinese spy. Trump said Huang said he had “no knowledge” of the incident and that Trump believed what the Huida CEO said.

The New York Times reported on the 10th that US Secretary of State and National Security Advisor Marco Rubio briefed Trump on information held by US intelligence agencies when Trump was boarding Air Force One to China. Relevant intelligence shows that Huang Renxun has been interacting with a woman who is believed to be a Chinese spy.

The New York Times, citing people familiar with the matter, said this is at least the second time in the past seven months that Trump has received relevant intelligence.

The allegations have raised concerns about Huida’s governance, export control compliance and the chip maker’s excessive reliance on Huang’s leadership. At the same time, investors are also more concerned about whether the huge funds currently invested by companies in artificial intelligence (AI) infrastructure can actually bring the same return on investment.

Huida’s share price fell 5.47% on the 10th, after falling 4.3% on the previous trading day. With this, Microsoft once again overtook HUDA and became the world’s second largest company by market value.

Bank of America analysts explained in a research report that “the core of the current debate in the investment market is whether this incident is limited to individual companies, or whether it will trigger regulatory restrictions and operational disruptions across the entire AI infrastructure industry.” “We should not directly compare unfounded allegations with the commercial damage that has already been done.”

The information said Huang Le, her husband and sister established a business network in China and Singapore to obtain Huida chips.

It has been told in the report that the center of this corporate network is Shanghai Century Litong of China. This company will receive Huida’s priority cloud partner status in 2023, so it will have priority in obtaining Huida chips.

When Huida chip orders, which were subject to US export controls, stopped, Huang Le used his relationships with Huida and its dealers to obtain supplies. According to reports, it helped transport approximately 240,000 H100, H200 and some A100 chips to China.

According to reports, Shanghai Century leases Litong computing power and uses Huida chips, some of whose products are banned from being sold to China, to operate its data center.

Some of these chips are used by Alibaba, Tencent, and small AI labs in China.