Nvidia Shares fell about 5% in premarket trading on Monday after the tech giant was rocked by an investigation into CEO Jensen Huang’s relationship with a businessman who intelligence agencies say is a Chinese spy.
U.S. intelligence agencies have announced that Alice Huang, an executive at cloud company MegaSpeed, is passing information to the Chinese government, according to reports in the New York Times and Financial Times.
Nvidia said its board of directors launched an independent investigation after reports that Huang was the target of “foreign intelligence operations.”
The company said in a statement on Sunday that Hwang “fully supports this review and is committed to cooperating.”
The co-founder and CEO told employees in an email that he had “failed” in his responsibility to serve his colleagues, board of directors, partners and shareholders around the world.
“I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am truly sorry,” Huang said in an email.
According to Reuters, Chinese Foreign Ministry spokesperson Guo Jiakun said on Monday that the “so-called Chinese spy story” was baseless.
Nvidia was down 4.8% in pre-market trading.
Nvidia’s stock price since the beginning of the year.
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