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Nvidia is facing a crisis following reports of a relationship between its CEO, Jensen Huang, and a Chinese businesswoman suspected of having ties to Chinese intelligence, amid allegations that advanced processors were transferred to China—claims for which the full evidence has not been disclosed. The company’s board has launched an independent investigation, the FBI is examining the case, and the company and Huang are facing a shareholder lawsuit over alleged failure to disclose potential risks. Nvidia shares fell more than 8% in after-hours trading, with estimates suggesting the company could lose hundreds of billions of dollars in market value. The possibility of a leadership change has also raised concerns about the company’s future. The crisis has intersected with Huang’s close relationship with Donald Trump and his defense of selling some processors to China. Lawmakers from both parties are pushing for tighter restrictions amid concerns that data centers outside China could be used to circumvent them.
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