Nvidia hires top law firm to probe CEO's alleged ties to Chinese spy
Nvidia has engaged New York law firm Wachtell, Lipton, Rosen & Katz to conduct an independent investigation into CEO Jensen Huang's relationship with an alleged Chinese intelligence operative, while the company says Huang will remain in his role.
Nvidia announced it has retained the New York-based law firm Wachtell, Lipton, Rosen & Katz to carry out a "thorough and independent" review of chief executive Jensen Huang's relationship with an alleged Chinese spy. The investigation will be led by partner Joon Kim, whose background includes serving as a U.S. attorney for the Southern District of New York and handling cases involving securities fraud, money laundering and high-profile investigations.
The chipmaker did not specify a timeline for the probe but said Huang will continue to lead the business he co-founded without interruption. The move follows media reports that Huang had an affair with Alice Huang, a Nvidia customer described as an alleged Chinese intelligence operative, and his subsequent admission of marital infidelity.
U.S. ambassador to China David Perdue told Bloomberg Television that the situation underscores the need for vigilance, adding that national security is intertwined with economic security in dealings with China.
The scandal has erased roughly $430 billion from Nvidia’s market value as investors assess potential repercussions for the company and its AI-focused growth. Analyst Dan Ives estimated a 15 % probability that Huang could be removed as CEO, noting that the board’s investigation could last four to six weeks and create continued uncertainty for the stock.
Wachtell, Lipton, Rosen & Katz is known for its work on corporate defenses such as the shareholder rights plan and has advised on major transactions and government matters, including the 2008 Treasury guidance on the Fannie Mae and Freddie Mac takeover.