Nvidia stock PLUMMETS as former CEO faces looming questions

E. UNPEELED. ED LAWRENCE AT THE WHITE HOUSE. THANK YOU. >> Sandra: BRING IN DAN AND. PAUL. THANK YOU FOR BEING HERE. PICK YOUR BRAINS. WHAT PEOPLE SHOULD KNOW ABOUT. THIS. DAN, FROM THE INTELLIGENCE. PERSPECTIVE, THE NATIONAL. SECURITY PERSPECTIVE, HOW BIG. ARE THE IMPLICATIONS OF THIS? >> I THINK THEY'RE PRETTY BIG. WE DON'T QUITE KNOW HOW BIG. I REMEMBER A FORMER BOSS OF MINE. AT CIA USED TO LIKE TO SAY THAT. COUNTER INTELLIGENCE FLAPS LIKE.

THIS ONE NOT LIKE FINE WINE. BETTER WITH AGE. JENSEN HUANG NEEDS TO SIT WITH. THE FBI. WE'RE AN INCIDENT RESPONSE PHASE. AND NEED TO DO DAMAGE. ASSESSMENT. THE FBI IS BEST EQUIPPED TO DO. THAT. GENERALLY SPEAKING WITH THESE. SORTS OF ESPIONAGE OPERATIONS, CHINA WOULD HAVE THREE GOALS IN. MIND. THE FIRST COLLECT INTELLIGENCE. ON U.S. HIGH-TECH POLICY. AND THE SEMICONDUCTOR CHIPS. REMEMBER THAT JENSEN HUANG WAS. THE CLOSE CONFIDANT OF THE TRUMP. ADMINISTRATION INCLUDING. PRESIDENT TRUMP. SECONDLY, THEY WOULD WANT TO.

INFLUENCE U.S. POLICIES SO WE. WOULD EXPORT MORE CHIPS TO. CHINA. AND THIRD WHICH IS WHERE WE ARE. RIGHT NOW, NONE OF THESE. OPERATIONS IS EXPECTED TO LAST. FOREVEVER. SO WHAT CHINA WANTS TO DO IS. DAMAGE THE REPUTATION OF NVIDIA. WHOSE STOCKS ARE PLUMMETING. RIGHT NOW AND LOSING HUNDREDS OF. BILLIONS OF DOLLARS REPORTED HAS. THE SHARES PLUMMET. THAT'S WHAT THEY WANT TO DAMAGE. NVIDIA BRAND AND WIN THE AI.

RACE. >> John: WE'RE LEARNING OF THE. SECOND ALLEGED AFFAIR WITH THE. SUBORDINATE AT NVIDIA THAT MAY. HAVE BEEN THE FINAL NAIL IN THE. COFFIN FOR JENSEN HUANG. BUT DO YOU THINK THAT CHINA. LOOKED AT HIM AS EXECUTIVE AND. LOOK SOME IDEA HE'S FLANDERRING. OUT THERE, LET'S GET IN ON THAT. ACTION AND TRY TO PLANT A SPY IF. THE MIDST AND GET INFORMATION. FROM HIM IF, NOT THE CHIPS. THEMSELVES. >> CERTAINLY LOOKS THIS WAY NOW.

WHY INTELLIGENCE CAN BE SO. IMPORTANT. YOU BETTER BELIEVE IF IN FACT IT. IS DEMONSTRATED SHE WAS A. CHINESE SPY, CERTAINLY THERE'S A. LOT POINTING TO THAT. SHE'S ACTUALLY NOW SHOWN TO BE. GOING IN AND OUT OF TAIWAN WHERE. SHE'S BARRED FROM ENTERING. LET'S REMEMBER THAT NVIDIA'S. PARTNER THMC MAKES THE CHIPS IN. TAIWAN. HE'S BARRED FROM SINGAPORE WHERE. HER COMPANIES WERE. IN COLLECTING ALL OF THE. INFORMATION IN OR AROUND HIM,

THEY MAY VERY WELL HAVE. DEVELOPED THE VULNERABILITY ON. HIM. HE'S 63 YEARS OLD AND GIVES THE. BEHAVIOR AND BUMP HIM AND THEY. WERE RUNNING IN THE CIRCLES THAT. COULD SET UP A BUMP WITH HER AND. THROUGH SOMEBODY ELSE. WE DON'T KNOW. THAT'S WHAT THEY DO TO. CONTEXTUALIZE THE SITUATION TO. ARRANGE THE KIND OF MEETING THAT. FEELS NATURAL AND FRANKLY SO HE. DOESN'T FEEL IT COMING AT HIM. >> Sandra: THE AMERICAN PUBLIC. SEES THIS STORY UNFOLDING, THIS.

IS NO DUMMY. THIS IS ONE OF THE BRIGHTEST AI. STARS ON THE PLANET. I MEAN, HE CO-FOUNDED THE. COMPANY AND BEEN AT THE HELM OF. IT FOR OVER THREE DECADES AND. LED IT TO THE PROSPERITY AND. $4 TRILLION. AND STOCKS TAKING A SINGLE DIGIT. HIT. LOST A QUARTER OF THE VALUE IN. JUST THE LAST MONTH. WHAT DO YOU THINK IS GOING ON. HERE, DAN, WHEN YOU SIT BACK AND. YOU LOOK AT THE DETAILS THAT WE. KNOW SO FAR? ARE YOU OPTIMISTIC EVEN IF HE. WAS CARRYING ON WITH THE PERSON, THAT MAYBE DIDN'T SHARE A DARN.

THING? MAYBE SHE DIDN'T WALK AWAY WITH. ANYTHING FROM IT. >> YEAH, I FRANKLY DOUBT THAT. LOOK, THIS SHOULD BE AN. ADMONITION TO ALL WHO SEEK TO DO. BUSINESS WITH CHINA. THE CHINESE HAVE A LAW ON THEIR. BOOKS THAT REQUIRES EVERY. CITIZEN TO WORK WITH THE. MINISTRY STATE SECURITY, EVERY. BUSINESS WE ARE IN CONTACT IS. GOING TO REPORT BACK TO CHINESE. SECURITY. SO I THINK IT'S OVER TO THE FBI. TO SEE WHAT SORT OF QUESTIONS. SHE WAS ASKING HIM. SHE MAY HAVE BEEN SEEKING TO.

DOWNLOAD INFORMATION FROM HIS. COMPUTER WITHOUT HIM EVEN. KNOWING IT. THERE ARE ALL SORTS OF THINGS. SHE COULD HAVE BEEN DOING TO. COLLECT INFORMATION FROM HIM. THAT WOULD HAVE BEEN USEFUL TO. THE CHINESE. AGAIN, THAT'S SOMETHING THAT. WE'RE GOING TO HAVE TO DIVE. INTO. THE CONCERN HERE FOR SURE HAS TO. BE THAT THIS ISN'T THE ONLY. CASE. I THINK WE WOULD DO WELL TO. REMEMBER THAT ANYONE WHO IS IN. CONTACT WITH CHINESE BUSINESS. PEOPLE OR WORKING IN BEIJING. FACES THESE SAME RISKS. AND IT'S WHY IT'S SO IMPORTANT. FOR THE DIRECTOR OF NATIONAL.

INTELLIGENCE JAY CLAYTON TO GET. OUT IN FRONT OF THIS ALONG WITH. THE FBI AND GIVE GOOD GUIDANCE. TO THE PRIVATE SECTOR. NOT A FAIR FIGHT WHEN THE U.S. PRIVATE SECTOR COMPANY IS HAVING. TO DEAL WITH CHINESE. INTELLIGENCE. >> John: IT'S ONE OF THE. REASONS WHY WHEN WE GO TO CHINA. ON BUSINESS, WE TAKE BURNER. PHONES AND LAPTOPS WITH US. HERE IS WHAT THE "NEW YORK. TIMES" SAID ABOUT THE GROWING. SOPHISTICATION ABOUT THE CHINESE. OPERATION. CHINESE LEAD INTELLIGENCE THE. MINISTRY OF STATE SECURITY.

TRANSFORMED SERVICE ALIGNED OF. GATHERING GOSSIP AT PARTIES OF. SOPHISTICATED SPY SHOT GO TOE TO. TOE WITH BIGGER TOOLS. AS INVOLVED WITH AI AS HE IS, JENSEN HUANG DIDN'T GO TO ONE OF. THE MODELS AND SAID I MET A. WOMAN IN SINGAPORE WHO REALLY. LIKES ME AND A CHANCE SHE'S A. CHINESE SPY? COME ON. SIMPLE STUFF. >> IS IT NOT CONFOUNDING. ESPECIALLY SOMEBODY WHO WAS. OBVIOUSLY VERY INTELLIGENT.

I'M SURE A HIGH LEVEL SECURITY. CLEARANCE IN LIGHT OF WHAT HE. WAS DOING. YOU KNOW, HIS COMPANY. REALISTICALLY OPERATED AT THE. LEVEL OF GEOPOLITICS. HIS COMPANY WAS OUR EDGE, IS OUR. EDGE AGAINST OUR PRIMARY. GEOPOLITICAL ADVERSARY CHINA. TO PUT HIMSELF IN THE POSITION. OF VULNERABILITY LIKE THIS IS A. NATIONAL SECURITY ISSUE. HE SHOULD HAVE GOTTEN OFF THE. BRIEFINGS THAT ANYBODY IN THE. BUSINESS GETS WHEN YOU GO. OVERSEAS WHERE YOU COULD BE. EXPOSED TO THIS KIND OF BEHAVIOR.

AND ACTIVITY. ANYBODY WHO EVER HAD A SECURITY. CLEARANCE WHO TRAVELS KNOWS. THIS. AND ONE OF THE FIRST THINGS YOU. GET IS AN ADMONITION AGAINST THE. OLDEST TRICK IN THE ESPIONAGE. THAT IS A HONEY TRAP. IF THAT IS WHAT HAPPENED HERE, HE'S IN A TOUGH SPOT. THEY WILL BRING HIM INTO. CONGRESS. HE WILL BE UNDER OATH. RECOGNIZE IF SOMETHING CRIMINAL. MAY HAVE HAPPENED HERE AND HE'S. UNDER OATH, HE WILL HAVE TO. SPEAK THE TRUTH. AND IS HE GOING TO TAKE THE. FIFTH UNDER THOSE CIRCUMSTANCES?

THERE'S SOME HIGH DRAMA COMING. HERE. AMERICA DESERVES ANSWERS. >> Sandra: APPRECIATE THE. DEVIL'S ADVOCATE. I THOUGHT MAYBE A CHANCE. THIS IS FASCINATING. WE HAVE A LOT MORE TO LEARN. ABOUT ALL OF THIS OF COURS.