Nvidia Hires Law Firm to Probe CEO Jensen Huang's Affair

Nvidia has hired the New York law firm Wachtell, Lipton, Rosen & Katz to investigate an affair between its chief executive, Jensen Huang, and a woman alleged to be a Chinese spy.

The Investigation

Jensen Huang admitted to having a romantic relationship outside of his marriage with Alice Huang, a woman believed to be a spy for Beijing. Alice Huang was an executive at a Singaporean customer firm named Megaspeed. Nvidia announced on Tuesday that attorney Joon Kim will lead a thorough and independent investigation. A committee of independent directors is overseeing the probe. Nvidia stated it has no reason to believe company secrets or national security were compromised. Meanwhile, the FBI is also conducting its own probe.

Market Impact

Nvidia shares fell to a near-yearly low on Tuesday. The drop wiped more than $500bn off Nvidia's stock market value since Friday. The company is a central player in the US artificial intelligence boom as the sole maker of a vital computer chip needed to run AI tools.

Political Reaction

Megaspeed was previously suspected of helping divert Nvidia chips to China. Nvidia stated that concern was investigated and debunked, and that the US government never informed the firm of any intelligence concern. According to the New York Times, Secretary of State Marco Rubio sent a memo in the spring warning that the Nvidia boss was close to a Chinese spy. Beijing rejected the claims as intended to smear China. US President Donald Trump stated on Monday that he spoke to Jensen Huang, who told him he had no idea she was a spy, and Trump said he believed him. However, leaders of the House Committee on Foreign Affairs have asked Jensen Huang to appear for a closed-door briefing next week and have the authority to issue a subpoena.

Context

Wachtell is a major US law firm with tech clients like OpenAI and Salesforce. Joon Kim is a former US Attorney for New York's Southern District. Jensen Huang has led Nvidia to become one of the world's most valuable companies and serves as a key public figure for the AI industry.