Nvidia CEO Jensen Huang is facing a class-action lawsuit and an FBI investigation following allegations that he had an affair with Alice Huang, a suspected Chinese intelligence asset. The developments come as Nvidia’s board conducts an independent probe into the matter.
Nvidia and Huang sued over spy claims
On November 9, a proposed class-action lawsuit was filed against Nvidia and Huang, accusing them of defrauding shareholders by concealing his alleged ties to Alice Huang, who U.S. authorities suspect was recruited by China’s Ministry of State Security (MSS). The lawsuit, filed by Rosen Law Firm, claims Nvidia and Huang made false and misleading statements about the suspected spy and her employer, Megaspeed, a Singapore-based data center company.
Huang has admitted to an affair with Alice Huang but denied any knowledge of her alleged espionage activities. Nvidia’s board launched an independent investigation on November 8, stating it had no reason to believe U.S. national security or company secrets were compromised.
FBI opens investigation into alleged honeypot operation
U.S. President Donald Trump confirmed on November 10 that the FBI is investigating the allegations, stating Huang told him he had no idea Alice Huang was a spy. Trump added that he believed Huang’s account. The FBI has not provided further details.
China has denied involvement, calling the allegations "entirely groundless" and accusing the U.S. of attempting to smear the country. Foreign Ministry spokesperson Guo Jiakun stated the claims were "baseless vilification."
Nvidia’s stock declines amid scrutiny
Nvidia’s shares have fallen 17% since late October, coinciding with reports of the alleged espionage operation. The company, a central player in the AI industry, has faced heightened scrutiny over its role in the U.S.-China tech rivalry.
Background: Alice Huang’s rise and Megaspeed’s purchases
Alice Huang, a former Chinese state broadcaster reporter, worked in private equity before acquiring Megaspeed International in 2022. The company, which became the largest buyer of Nvidia chips in Southeast Asia, has drawn attention for its rapid expansion and large-scale purchases of advanced AI equipment. Trade records show Megaspeed’s Malaysian sister company imported £3.6 billion worth of Nvidia chips in May 2025, despite having minimal cash reserves.
Nvidia has not indicated any breach of security but is reviewing all available information as part of its investigation. Huang has pledged to cooperate with authorities.