Nvidia Hires Top US Law Firm To Probe CEO Jensen Huang's Alleged Chinese Spy Scandal

New Delhi: US-based chipmaker Nvidia has hired a prominent American law firm to investigate allegations surrounding its chief executive officer and co-founder, Jensen Huang, and his reported relationship with a woman suspected of working for Chinese intelligence. The development comes amid growing scrutiny from US lawmakers over potential national security risks and the company's business dealings with China.

Nvidia's independent directors have appointed Wachtell, Lipton, Rosen & Katz to conduct a "thorough and independent investigation" into the matter. The investigation will be led by Joon H Kim, a partner at the New York-based law firm and former acting US Attorney for the Southern District of New York.

In a statement issued on November 10, the company confirmed Kim's appointment, following its November 8 announcement that its board was examining reports suggesting that Huang may have been targeted by a foreign intelligence operation.

The investigation centres on Alice Huang, a former executive at Singapore-based data centre company Megaspeed International. According to reports, US intelligence officials suspect that she was recruited by China's Ministry of State Security. Alice Huang and Jensen Huang are not related.

Reports have alleged that Alice Huang developed a relationship with the Nvidia chief while working at a company that purchased the American chipmaker's advanced artificial intelligence processors. The allegations have raised concerns about whether foreign intelligence could have gained access to sensitive corporate information or influenced the movement of restricted semiconductor technology to China.

Jensen Huang acknowledged being unfaithful to his wife in a message to employees on November 8, apologising to his family and colleagues. He also expressed support for the company's investigation and pledged full cooperation.

"I support the investigation and will cooperate fully," Huang said, while reiterating his commitment to protecting Nvidia and supporting US national security.

Nvidia's board has maintained that it has no reason to believe that American national security or the company's confidential information has been compromised. The company has also expressed confidence in Huang's leadership, confirming that he will continue as chief executive while the investigation proceeds.

Shareholder Lawsuit Adds To Nvidia's Troubles

The controversy has also taken a legal turn, with Nvidia and Huang facing a proposed shareholder class-action lawsuit in California.

The complaint, filed on November 9, accuses the company and its chief executive of misleading investors by failing to disclose Huang's alleged relationship with Alice Huang and the potential national security and business risks associated with it.

The lawsuit reportedly alleges that Nvidia made false or misleading statements about its relationship with Megaspeed and failed to disclose information that could have affected investors' assessment of the company's business prospects.

Meanwhile, the allegations have intensified scrutiny of Nvidia's semiconductor exports to China. According to reports cited by Reuters, Alice Huang and her associates allegedly used a network of companies to facilitate shipments of at least $7.5 billion worth of Nvidia chips to Chinese businesses.

The issue has attracted attention in Washington, with US lawmakers seeking answers about Nvidia's safeguards against foreign espionage and its dealings with entities connected to China. Republican leaders of three congressional committees have reportedly requested a closed-door briefing from Huang on November 18.

US President Donald Trump has also weighed in on the controversy, defending Huang and saying that the Nvidia chief had told him he was unaware that Alice Huang was suspected of being a Chinese spy.

China's Foreign Ministry, meanwhile, has rejected the espionage allegations as groundless.

The controversy has also affected investor sentiment. Nvidia reportedly lost approximately $430 billion in market value over two trading sessions as concerns surrounding the allegations intensified.

The investigation by Wachtell Lipton is expected to examine the available information surrounding the alleged relationship, potential security implications and the company's handling of the matter.

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