Nvidia Faces Financial and Legal Pressure Over CEO Investigation

Nvidia has hired the New York law firm Wachtell, Lipton, Rosen & Katz to lead an independent investigation into an affair between chief executive Jensen Huang and a woman named Alice Huang, who is alleged to be a spy for Beijing. ## Investigation Details Attorney Joon Kim, a former US Attorney for New York's Southern District, will lead the probe. The FBI is also conducting a separate investigation into the matter, and a committee of independent directors will oversee Nvidia's internal review. Nvidia's board stated they have no reason to believe national security or company secrets were compromised. ## Market and Political Fallout The company's share price dropped near a yearly low, wiping $500bn, or £375bn, from its stock market value since Friday. US President Donald Trump stated he spoke with Jensen Huang, who told him he had no idea Alice Huang was a spy, and Trump added that he believed him. Meanwhile, congressional leaders of the House Committee on Foreign Affairs asked Jensen Huang to appear next week for a closed-door briefing, with the power to issue a subpoena if needed. Alice Huang worked as an executive at Megaspeed, a Singaporean customer of Nvidia that was previously suspected of diverting chips to China, though Nvidia maintained the US government never warned them about the firm. Secretary of State Marco Rubio sent a memo in the spring warning of the relationship, while Beijing's foreign ministry rejected the allegations as an attempt to smear China. ## Context As the world's second most valuable company and the sole maker of vital computer chips powering the artificial intelligence boom, Nvidia holds immense strategic importance to the US tech sector. High-profile corporate leadership scandals involving geopolitical tensions naturally attract intense regulatory, financial, and congressional scrutiny.