What happened?
Nvidia's board opened an investigation into CEO Jensen Huang's relationship with a suspected Chinese spy. The company's stock fell more than 4% following the news.
Legal risk grows
According to a securities law expert, the company's earlier insistence that the relationship was "normal" could turn into a serious and costly problem in terms of investor lawsuits. TechCrunch reports that preparations for litigation are gaining pace.
Why it matters
Nvidia sits at the center of the AI chip market. The board investigation and potential lawsuits could put pressure on the company's governance and market confidence.
