Nvidia hires law firm to investigate Jensen Huang affair

Nvidia has engaged the New York law firm Wachtell, Lipton, Rosen & Katz to conduct an inquiry into a romantic affair involving its chief executive, Jensen Huang. Mr Huang, a co-founder who helped build Nvidia into one of the world's most valuable companies, confirmed he had an affair outside his marriage.

The woman involved, Alice Huang, is allegedly a spy for Beijing and previously worked as an executive at Megaspeed, a Singaporean firm that has been an Nvidia customer. Nvidia announced on Tuesday that Wachtell attorney Joon Kim will lead a thorough and independent investigation into the matter, while the FBI is also carrying out its own probe.

The situation carries potential business and national security implications, as Megaspeed was suspected of assisting in the diversion of Nvidia chips to China—a claim Nvidia has previously stated was investigated and debunked. Nvidia is considered a central player in the US artificial intelligence boom as the sole manufacturer of a vital computer chip needed for AI tools.

On Tuesday, Nvidia shares dropped to a near-yearly low, causing the company to lose more than $500bn (£375bn) in market value since Friday. According to the New York Times, Secretary of State Marco Rubio issued a memo to Washington officials this spring warning that the Nvidia boss was in a close relationship with a Chinese spy.

Beijing’s foreign ministry has rejected the allegations, stating they were intended to smear and malign China. US President Donald Trump stated on Monday that he had spoken with Jensen Huang, who told him, "I had no idea she was a spy," adding that he believed the executive.

Nvidia's board stated on Sunday that it had no reason to believe national security or company secrets were compromised. Nevertheless, the relationship has attracted political scrutiny, with leaders of the House Committee on Foreign Affairs requesting that Jensen Huang appear for a closed-door briefing next week.

A person familiar with the request indicated the Nvidia boss has not yet confirmed his attendance. Committee chair congressman Brian Mast stated he would subpoena Jensen Huang if necessary to force his appearance.