Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
An apparent honeytrap scandal involving the boss of the world’s most valuable company and a suspected Chinese spy is rocking the AI sector.
Overnight, Nvidia announced it is launching an independent investigation following reports that founder and CEO Jensen Huang has been the target of “a foreign intelligence effort”
That effort, reports claim, led to Huang conducting a romantic relationship with a Chinese woman, Alice Huang, who was recruited to spy for China’s Ministry of State Security intelligence agency.
Last night, Huang admitted having an affair, telling Nvidia staff:
“I owe my family and all of you an apology.
“I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry.”
Huang added that he was “fully committed to Nvidia” and would work to earn back employees’ confidence.
But the issue goes much further than simply a CEO’s conduct. It falls squarely within Washington’s concerns that it could lose the AI race to China.
Alice Huang worked for a Singapore-based datacenter company called Megaspeed, which has been suspected of routing Nvidia chips to China and evading export controls.
Jensen Huang has been a critic of those restrictions, arguing in May 2025 that US export controls designed to limit China’s access to artificial intelligence chips were a “a failure”, and had simply encouraged China to develop its own alternatives.
The revelation comes just a few days after shares in AI-linked companies tumbled, before a late recovery on Wall Street on Friday.
Today, Asia-Pacific markets are staging a recovery – Japan’s Nikkei has jumped by 2.2%, while Taiwan’s TAIEX has surged almost 5%.
South Korea’s Kospi is missing out, though, down by 0.6%.
The agenda
-
7am GMT: German trade data
-
Afternoon: Eurogroup meeting of eurozone finance ministers
Nvidia’s shares are expected to drop when Wall Street opens later today.
Deutsche Bank analyst Jim Reid reports:
Asian equity markets are rallying this morning after Wall Street’s rebound on Friday, although concerns surrounding an internal investigation involving Nvidia CEO Jensen Huang are capping gains.
The company is down around -3.5% on platforms that provide weekend prices.
Shares in some companies at the heart of the AI boom are rising today.
Taiwan’s TSMC, the world’s largest contract chipmaker, have risen by 4.7%, for example.
SK Hynix, the South Korean chipmaker, is up a more modest 0.35%.
Nvidia’s announcement of an independent investigation introduces another uncertainty for semiconductor stocks and the broader AI investment ecosystem, says Naeem Aslam, CIO of Zaye Capital Markets.
He adds:
European technology manufacturers and semiconductor equipment suppliers remain particularly exposed to developments in American AI spending, meaning any renewed selling pressure on Wall Street could quickly spread across European equity markets.
Bloomberg say the scandal is a “humbling moment” for Huang, calling him one of Silicon Valley’s biggest celebrities in recent years.
They add:
Huang has crisscrossed the globe promoting artificial intelligence computing — a field his company dominates — drawing throngs of fans swept up in “Jensanity.”
His relentless appearances, featuring science lectures, dad jokes and his signature leather jackets, have turned him into AI’s main cheerleader.
Bill Ackman, CEO of investment firm Pershing Square, is hoping that Jensen Huang’s dalliance is merely a ‘simple affair’, not a national security threat.
Posting on X, Ackman called for support for Huang and his family, before adding:
“I am not suggesting he gets a free pass. If indeed this is more than an affair, then it is obviously a real problem. I like the guy. He has done a lot of good for the world and I hope the damage here is minimal. That is, I am hoping for a simple affair, not a risk to our national security.“
US president Donald Trump has offered support to Jensen Huang.
Trump told reporters:
“I have not spoken to him about it. I just know he’s a fine person, but you never know what is going on.
I hope everything’s fine … I think he’s an honourable guy.“
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
An apparent honeytrap scandal involving the boss of the world’s most valuable company and a suspected Chinese spy is rocking the AI sector.
Overnight, Nvidia announced it is launching an independent investigation following reports that founder and CEO Jensen Huang has been the target of “a foreign intelligence effort”
That effort, reports claim, led to Huang conducting a romantic relationship with a Chinese woman, Alice Huang, who was recruited to spy for China’s Ministry of State Security intelligence agency.
Last night, Huang admitted having an affair, telling Nvidia staff:
“I owe my family and all of you an apology.
“I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry.”
Huang added that he was “fully committed to Nvidia” and would work to earn back employees’ confidence.
But the issue goes much further than simply a CEO’s conduct. It falls squarely within Washington’s concerns that it could lose the AI race to China.
Alice Huang worked for a Singapore-based datacenter company called Megaspeed, which has been suspected of routing Nvidia chips to China and evading export controls.
Jensen Huang has been a critic of those restrictions, arguing in May 2025 that US export controls designed to limit China’s access to artificial intelligence chips were a “a failure”, and had simply encouraged China to develop its own alternatives.
The revelation comes just a few days after shares in AI-linked companies tumbled, before a late recovery on Wall Street on Friday.
Today, Asia-Pacific markets are staging a recovery – Japan’s Nikkei has jumped by 2.2%, while Taiwan’s TAIEX has surged almost 5%.
South Korea’s Kospi is missing out, though, down by 0.6%.
The agenda
-
7am GMT: German trade data
-
Afternoon: Eurogroup meeting of eurozone finance ministers
