In an attempt to clear the air surrounding a controversial affair, Nvidia, one of the world's most valuable tech companies, has enlisted the services of Wachtell, Lipton, Rosen & Katz, a prominent New York law firm. The investigation centers around Jensen Huang, co-founder and CEO of Nvidia, who is accused of having an extramarital relationship with Alice Huang, a woman believed to be a Chinese spy.
The alleged affair has drawn the attention of the FBI, who are also conducting their own probe, and raises concerns not only for Nvidia's business but also for national security. The woman in question was an executive at Singaporean company Megaspeed, a customer of Nvidia, adding another layer of complexity to the situation.
The affair has sent Nvidia's shares plummeting to near-yearly lows, erasing over $500 billion from the company's stock market value since last Friday. Given Nvidia's significant role in the US artificial intelligence (AI) sector as the sole manufacturer of a crucial computer chip for AI tools, the fallout from this affair could have far-reaching consequences.
The investigation will be led by Joon Kim, a former US Attorney for New York's Southern District, known for his work on fraud and criminal cases. The law firm Wachtell is one of the largest in the US, with notable clients in the tech industry such as OpenAI and Salesforce. The urgency of the investigation is underscored by the public image of Jensen Huang being closely linked to Nvidia's success and his prominent role in AI development.
It remains unclear if Alice Huang, who also goes by Huang Le, will be interviewed as part of the investigation. The committee on Foreign Affairs in Congress has requested Jensen Huang to appear for a closed-door briefing next week, but it is yet to be seen if he will comply with this request. If necessary, the committee has the authority to subpoena him to testify.
Nvidia's board has stated that they have no reason to believe the company's secrets or national security have been compromised, but have also set up a committee of independent directors to oversee the probe. The investigation will likely delve into the alleged relationship and its potential implications for Nvidia, both in terms of business and national security.