Nvidia has engaged Wachtell, Lipton, Rosen & Katz, a major New York-based law firm, to conduct an independent investigation into CEO Jensen Huang’s connection to an alleged Chinese intelligence operative. The probe will be headed by Joon Kim, a Wachtell partner and former federal prosecutor in New York who specializes in internal investigations, white-collar defense, and crisis management. Nvidia stated that Huang will remain in his leadership position throughout the process, though no completion timeline was provided.
The investigation follows reports that Huang engaged in an affair with Alice Huang, an alleged Chinese spy who was also an Nvidia customer. Initially, Nvidia denied any improper relationship, but Huang later acknowledged on Sunday that he had been unfaithful to his wife, stopping short of directly addressing the alleged Chinese national. Separately, Nvidia announced it was investigating whether Huang had been targeted by foreign intelligence operations. US Ambassador to China David Perdue characterized the situation as emblematic of broader concerns, emphasizing that economic and national security considerations are intertwined in US-China relations.
Wachtell is recognized as one of the nation’s most prestigious corporate law firms. The firm is known for pioneering the “poison pill” defensive strategy against hostile takeovers and has advised on numerous high-profile transactions and government matters. Kim previously served as acting US attorney for the Southern District of New York from 2017 to 2018, overseeing investigations into securities fraud, corruption, cybercrime, and other major cases.
Nvidia’s stock recovered partially following the announcement, with shares rising 3.8% in early trading to narrow recent losses to approximately $272 billion from Friday’s levels. Market observers have offered differing assessments of Huang’s tenure prospects, with some analysts estimating a 15% probability of his removal while others suggest the situation remains more uncertain. Industry analysts anticipate the investigation could extend four to six weeks, creating uncertainty for investors until additional information becomes available.
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