Nvidia’s board of directors announced Tuesday that it has retained prominent New York law firm Wachtell, Lipton, Rosen & Katz to conduct an independent investigation into Chief Executive Officer Jensen Huang following his admission of an extramarital affair with a woman linked to Chinese intelligence.
Former acting U.S. Attorney for the Southern District of New York Joon H. Kim, who joined Wachtell last month as a partner, will lead the probe. The inquiry will focus on whether company trade secrets or U.S. national security were jeopardized during the relationship, CNBC reported.
Fallout on Wall Street and Capitol Hill
The tech giant, which manufactures computer chips central to the global artificial intelligence sector, has been plunged into turmoil since Huang confessed to the relationship over the weekend. In an email sent to employees Sunday, Huang admitted to the extramarital relationship, stating that his actions harmed his family and offering no excuses while stressing his loyalty to U.S. national security, according to CNBC.
Nvidia’s stock slid 6 percent on Tuesday after dropping more than 4 percent on Monday, wiping roughly $500 billion from the company’s market capitalization since Friday and pushing shares near a yearly low, BBC News reported. Investors have grown concerned that the escalating controversy could imperil Huang’s position as chief executive, though a company representative said he plans to remain in the post without interruption.
The controversy has also drawn intense scrutiny from lawmakers in Washington. Rep. Brian Mast, the Republican chair of the House Foreign Affairs Committee, told ABC News on Tuesday that he is prepared to subpoena Huang if the executive fails to respond by Wednesday to a request for a closed-door briefing.
Mast, alongside House Intelligence Committee Chair Rick Crawford and Select Committee on China Chair John Moolenaar, requested that Huang provide testimony on Nvidia’s security protocols against foreign espionage. The Select Committee on China separately requested a closed-door appearance on Nov. 18. House Minority Leader Hakeem Jeffries also told ABC News that there are serious national security concerns that require a complete briefing.
Scrutiny Centers on Singapore Executive
The woman at the center of the controversy has been identified as Alice Huang, also known as Huang Le. Intelligence agencies in the U.S. surveilled her and concluded she was passing information to Beijing while working as an executive at Singapore-based Megaspeed, according to reports from The New York Times and the Financial Times cited by CNBC.
Megaspeed has previously been a customer of Nvidia. Although suspicions were raised that Megaspeed assisted in diverting restricted AI chips to China, Nvidia stated that those concerns were investigated and debunked, BBC News reported. The company added that American officials never cautioned Nvidia that Megaspeed presented an intelligence threat.
The Chinese government has dismissed the spying claims, describing them as baseless smears, ABC News reported. Neither Megaspeed nor Alice Huang, who is unrelated to Jensen Huang, replied to requests for comment from ABC News.
Federal Probes and Law Firm Track Record
Beyond the internal inquiry, President Donald Trump stated Monday that the FBI has initiated its own investigation. Trump told reporters that Huang claimed during a phone call that he had no idea the woman was an alleged operative for Beijing.
Nvidia’s independent directors stated Sunday that they currently have no reason to believe that corporate secrets or American security interests were compromised, adding that Huang fully supports the review and plans to cooperate.
Wachtell, the firm leading the review, is widely recognized for handling sensitive corporate governance crises. Kim, who previously oversaw high-profile public corruption, mob, and economic espionage prosecutions in Manhattan, recently helped lead the state investigation into former New York Gov. Andrew Cuomo, which concluded with findings of sexual harassment that prompted Cuomo’s resignation, Business Insider reported.
What remains unresolved is whether Huang will comply with the congressional deadlines to appear before lawmakers on Capitol Hill or face formal subpoenas as federal and internal investigations unfold.
