Nvidia is facing growing political, regulatory and investor scrutiny following reports about chief executive Jensen Huang’s alleged relationship with a Chinese businesswoman suspected of having links to Beijing’s intelligence network. The controversy has raised questions about the company’s corporate governance, access to restricted artificial intelligence chips and potential national security risks.

Nvidia’s market value fell by approximately $430 billion over two trading sessions as the allegations intensified. The company’s shares have declined about 9.5% since the controversy emerged, adding to investor concerns about the technology sector’s heavy spending on artificial intelligence.

According to a report by The Information, Alice Huang, also known as Huang Le, allegedly helped facilitate at least $7.5 billion worth of Nvidia chip shipments to Chinese companies. She and her family reportedly developed a network of businesses across China and Singapore to obtain advanced Nvidia processors, including H100, H200 and A100 models.

The report said approximately 240,000 chips were moved into China, with some eventually reaching major technology companies and smaller artificial intelligence developers. Reuters said it could not independently verify these claims or establish Alice Huang’s whereabouts.

Nvidia’s independent directors have appointed Joon Kim, a partner at law firm Wachtell Lipton and a former acting U.S. attorney, to lead an internal investigation. The company said its board has no reason to believe that national security or confidential corporate information was compromised. Huang has pledged to cooperate with the review.

The Federal Bureau of Investigation is separately examining whether Huang was targeted in a foreign intelligence operation. Huang has acknowledged being unfaithful to his wife but has not publicly disclosed details of the relationship. China’s Foreign Ministry has dismissed the espionage allegations as baseless.

Political pressure grows in Washington

The controversy has also reached the highest levels of the U.S. government. A report said Secretary of State Marco Rubio briefed President Donald Trump in May about intelligence concerns involving Huang and Alice Huang while the president was travelling to China. The report suggested Trump had been informed about the matter on at least two occasions within seven months.

Trump said he had spoken with the Nvidia chief executive and asked whether he knew the woman was allegedly connected to Chinese intelligence. According to Trump, Huang said he had no knowledge of such links. A White House official disputed aspects of the reporting and referred to the president’s earlier remarks.

Senate Democratic Leader Chuck Schumer called for greater scrutiny of the administration’s handling of the matter and urged Congress to strengthen restrictions on advanced chip exports to China. Republican Senator Kevin Cramer separately suggested Huang should step down, citing concerns about possible foreign influence and the potential for extortion.

Questions have also emerged over Megaspeed International, a Singapore-based cloud computing company reportedly controlled by Alice Huang. The Financial Times reported that U.S. government agencies had pushed for the company to be considered for inclusion on the Commerce Department’s restricted trade list. However, the reported review had not resulted in its designation.

Nvidia, the Commerce Department and the companies mentioned in the reports had not provided detailed responses to all the allegations at the time of publication.

The investigation comes at a sensitive time for Nvidia, which has become a central supplier in the global artificial intelligence industry. The outcome could have implications beyond the company, potentially affecting U.S. technology export policy, corporate oversight and investor confidence in the semiconductor sector.