Tech giant Nvidia has enlisted the services of Wachtell, Lipton, Rosen & Katz (WLRK), a prominent US law firm, to conduct an extensive investigation into claims that its CEO, Jensen Huang, is in a romantic relationship with a woman alleged to be a Chinese spy. The FBI is also conducting a separate probe into the matter, which has sparked concern from US lawmakers and officials seeking to maintain a technological edge over China.
The company's shares have plummeted since Friday, erasing about $500 billion from its market value. Nvidia, a major player in the artificial intelligence (AI) sector and the world's second most valuable company after Apple, has become a national security concern due to its central role in AI tool development.
Alice Huang, also known as Huang Le, is the woman at the center of the controversy. She was an executive at Singapore-based Megaspeed, a customer of Nvidia. Although Megaspeed had faced suspicions of diverting Nvidia chips to China, Nvidia has stated that its investigation found these allegations to be unfounded. The company also maintains that it was not informed by the US government that Megaspeed posed an intelligence risk.
According to reports, US Secretary of State Marco Rubio sent a memo to senior officials earlier this year warning about Jensen Huang's close relationship with a Chinese spy. China has rejected these allegations, with its foreign ministry stating they were intended to smear and malign the country. Meanwhile, US President Donald Trump stated that he had spoken to Huang, who claimed he was unaware of Alice Huang's alleged spy status.
The investigation is being overseen by Joon Kim, a former US attorney for the Southern District of New York, known for his work on fraud and other criminal cases. It remains uncertain whether Wachtell will be able to interview Alice Huang. The outcome of this investigation could have significant implications for Nvidia, given its position in the AI industry and the sensitive nature of the allegations.