Ex-Acting US Attorney To Probe Nvidia CEO's Affair With Alleged Chinese Spy

Nvidia has retained the New York-based law firm Wachtell, Lipton, Rosen & Katz to conduct a "thorough and independent investigation" into its chief executive and co-founder, Jensen Huang, after he admitted to an extramarital affair with a business executive, Alice Huang, whom US intelligence suspects was a Chinese spy. 

Wachtell, one of the foremost law firms for counselling executives on how to navigate complex challenges in America, will advise Nvidia's board of directors on the inquiry into Huang. Joon H Kim, a partner at the firm and a former acting US Attorney of the Southern District of New York, will lead the firm's inquiry, the company said in a statement. 

Kim, who focuses on high-stakes litigation and enforcement, was hired by New York Attorney General Letitia James in 2021 to help investigate accusations of sexual harassment and other questionable behaviour by former governor Andrew Cuomo, who eventually resigned, according to a New York Times report.

The world's largest chipmaker announced the investigation earlier this week, saying that it had "no reason to believe that either national security or Nvidia secrets were compromised", but that “the board's inquiry will examine all available information.” The company said Huang "fully supports the review and has committed to cooperating with it."

China has, meanwhile, rejected the espionage claims. Alice Huang, the Chinese executive at the centre of the controversy, has also not commented on the issue.

Nvidia And Huang Face Shareholder Lawsuit

The development came after a shareholder sued Nvidia and Huang, accusing them of deceiving investors in their responses to media reports about Huang's affair with a purported Chinese spy that threatens national security.

The affair, which is also being scrutinised by Nvidia's board, has raised concerns that Beijing is using nefarious means to gain access to Nvidia's cutting-edge microchips, which power the development of artificial intelligence but face export restrictions to China. 

According to a NYT report, Huang has viewed Nvidia's 10-member board primarily as a governance requirement, rather than as an important part of the company's strategy or execution. It includes a collection of early investors, long-time partners and other business executives, many of whom have a long history with Huang.

The complaint filed Monday in a California court said the company misled investors about Huang's relationship with Alice Huang, who news reports said is suspected of working for Chinese intelligence, and the national security implications.

It accused Nvidia and Huang of failing to disclose the affair and issuing false statements about Nvidia's relationship with Megaspeed, which posed a "material risk" to Nvidia's reputation and business prospects.