The chip giant lost nearly $200 billion in market value at market close Monday, after its board initiated an investigation into whether CEO Jensen Huang was targeted by a foreign espionage operation. Huang acknowledged having an affair with Alice Huang, an AI firm executive suspected of gathering intelligence for China. Beijing denies the spying allegations. (The Logic)

Talking point: Nvidia is one of the most important companies in the U.S., supplying the chips used to power the country’s AI sector, and for that matter, the U.S. economy. Huang—who has led Nvidia since co-founding it 33 years ago—is the central figure in the company’s rise, exerting substantial control over its operations while helping shape Washington’s AI policies. That has included lobbying Trump to loosen export controls on Nvidia sales to China—something U.S. intelligence agencies believe Alice Huang influenced Jensen Huang to do, amid the countries’ race for AI supremacy. Huang will remain CEO during the investigation. Nvidia’s board expressed confidence in his leadership and said it has no reason to believe company secrets or U.S. national security were compromised.

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