Nasdaq defies Nvidia impact as Huang faces espionage affair probe

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Hello, this is Leonie Kidd with today's edition of Morning Squawk.

Trouble had been brewing, but over the weekend the story broke that Nvidia CEO Jensen Huang - the so-called 'torchbearer of AI' - has been having an affair with a woman that U.S. intelligence believes to be a Chinese spy. 

The news has sent shockwaves through the markets, with investors scrambling to assess the potential fallout for the AI industry more broadly.

Happening now: The Nvidia affair

Nvidia CEO Jensen Huang has issued an apology to his family, the company and investors after admitting to an affair with a woman who is alleged to be a Chinese spy. 

The stock is under heavy selling pressure in premarket trading, currently down over 5%  and lower by over 6% in Frankfurt. 

What we know so far: 

• Jensen Huang has admitted to an extramarital affair. 
• U.S. intelligence services have reportedly expressed concern that the woman, Alice Huang, has been passing information to Beijing. 
• Alice Huang works for Megaspeed, a Singapore-based cloud company that is an Nvidia customer. 
• Megaspeed has been accused of helping restricted Chinese companies acquire AI chips. 
• The Board of Nvidia has opened an investigation into the allegations.
• China's Foreign Ministry has said the "so-called Chinese spy narrative is completely unsubstantiated."  
• President Donald Trump reacted to the news, saying, "I think he's an honorable guy. I think he probably has an excuse for it."
• For the email that Jensen Huang sent to staff, as well as the statement from Nvidia, you can read it all here. 

• Colette Kress, CFO
• Ian Buck, VP and GM of Hyperscale
• Bryan Catanzaro, VP Applied Deep Learning
• Jay Puri, EVP Worldwide Field Operations
• Debora Shoquist, EVP Operations

Nvidia's move is keeping Nasdaq futures under pressure, with the index dipping in and out of the red this morning. The Dow and S&P futures are holding just above the flatline.