Nvidia shareholders sue over Huang affair as Trump confirms FBI investigation
Nvidia and CEO Jensen Huang face a shareholder lawsuit over his affair with an alleged Chinese spy as the FBI investigates potential national security concerns surrounding the AI chip giant.
Nvidia shareholders sue over CEO Jensen Huang’s alleged Chinese spy ties as Trump confirms FBI probe
Nvidia and CEO Jensen Huang are facing a shareholder lawsuit over his affair with an alleged Chinese intelligence agent as President Donald Trump confirms the FBI is investigating the matter, raising fresh national security concerns surrounding the artificial intelligence chip giant.
The proposed class-action lawsuit, filed Monday in federal court in San Jose, California, accuses Nvidia and Huang of misleading investors by failing to disclose his alleged relationship with Alice Huang, a former executive at Singapore-based data center company Megaspeed International, and the potential risks it posed to the company’s reputation and business.
The New York Times previously reported that U.S. intelligence officials had identified Alice Huang, who is not related to the Nvidia CEO, as a Chinese intelligence asset. Beijing has denied the allegations.
Trump confirmed Monday that the FBI was looking into the matter but defended Jensen Huang, calling him a “very honorable man.”
“I know the FBI is looking into it in terms of something else, and I think that he’ll be in good shape,” Trump told reporters at the White House.
The president said he had spoken with Huang, who told him he had “absolutely no idea that the person in question was a spy.”
Huang has publicly acknowledged being unfaithful to his wife and apologized in a letter to Nvidia employees, pledging to cooperate with the investigation.
“I support the investigation and will cooperate fully. I love our country and our company. I am committed to protecting NVIDIA and supporting America’s national security,” Huang wrote.
Nvidia announced Sunday that it was conducting an independent investigation into reports that its CEO had been targeted by a foreign intelligence operation.
The controversy has intensified scrutiny of the company’s role in the global AI race, particularly as Washington seeks to prevent China from gaining access to advanced American semiconductor technology.
Nvidia shares fell 4.3% Monday, wiping approximately $190 billion from the company’s market capitalization. The shareholder lawsuit was filed shortly after markets closed.
The lawsuit seeks unspecified damages.
The Associated Press and Reuters contributed to this report.
Nvidia-backed Fireworks AI alerts customers after security breach exposes data
Nvidia-backed Fireworks AI is notifying customers of a security breach that exposed account and billing information, with some customers also having sensitive datasets, stored secrets and incomplete AI models accessed by hackers.
The AI infrastructure company disclosed Monday that its investigation into an October cyberattack uncovered a broader impact than initially reported, when only stored secrets — such as digital credentials used to access software and services — were known to have been compromised.
Fireworks said evidence links the intrusion to a financially motivated cybercriminal group engaged in “LLMJacking,” a scheme involving stolen access to large language models that can be resold through illicit gateways.
The company also reported a separate security incident involving a third-party cloud provider on Oct. 23. Hackers subsequently accessed Fireworks development machines and ran an unauthorized workload, causing additional customer data exposure.
Fireworks said payment card numbers were not affected and that it has found no evidence of further successful unauthorized access to its customer platform since Oct. 25.
The company has notified law enforcement and enlisted Palo Alto Networks’ Unit 42 cybersecurity team to investigate. It has also tightened security controls and temporarily disabled certain dataset uploads and downloads.
Fireworks said its investigation remains ongoing and that it is notifying affected customers with details about their exposure and recommended security measures.
Australia moves to tighten AI regulations after OpenAI agent breaches government website
Australia plans to require artificial intelligence companies to report security breaches and establish a federal AI regulator after an OpenAI agent gained unauthorized access to a government health website.
Prime Minister Anthony Albanese announced Tuesday that his government accepted all recommendations from a review of the incident, which involved an OpenAI agent accessing a Medicare medical statistics portal while researching public health spending.
OpenAI said the breach was unintentional and that its investigation found no evidence patient records were accessed.
“The law needs to get ahead of, and in some cases, make sure that it catches up with what is a very fast-changing world,” Albanese told reporters.
The proposed rules would mandate reporting of AI security incidents and unintended AI behavior, while a new regulator would oversee safety controls, assess risks and independently evaluate AI models. The government is also considering criminal law reforms for serious misconduct.
“The AI safety regulator will be able to enforce significant penalties for AI companies doing the wrong thing,” Albanese said.
The legislation is expected to be introduced next year amid tensions between Australia and U.S. tech companies over AI oversight and copyright protections.
Australia previously rejected requests from OpenAI and Anthropic for exemptions from copyright laws governing AI training. Both companies have since expressed support for mandatory reporting of security breaches involving AI agents.
Reuters contributed to this report.
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