Nvidia hires top US lawyer to investigate CEO’s alleged affair with Chinese spy

AI chip giant launches independent inquiry into national security concerns surrounding billionaire boss Jensen Huang, who has admitted cheating on his wife as the FBI also investigates

Nvidia has hired one of America’s most prominent law firms to investigate whether its billionaire chief executive Jensen Huang was targeted by Chinese intelligence after reports emerged of an affair with a woman suspected of spying for Beijing.

The world’s leading maker of AI chips confirmed today that former senior federal prosecutor Joon H. Kim, of New York law firm Wachtell, Lipton, Rosen & Katz, would lead an independent investigation overseen by members of its board.

The appointment comes after Huang, 63, publicly admitted being unfaithful to his wife and apologised to his family, employees and shareholders amid allegations that a Chinese businesswoman with whom he had a relationship was working for Beijing.

The woman, Alice Huang, is a former executive at Singapore-based technology company Megaspeed and is reportedly suspected by U.S intelligence officials of having links to China’s Ministry of State Security, according to media reports. She is not related to Jensen Huang.

The affair has raised concerns over whether sensitive information about Nvidia, whose advanced processors are central to the global AI industry, could have been exposed to Chinese intelligence.

In its latest statement, Nvidia said its independent directors had retained Kim, a former acting U.S Attorney for the Southern District of New York, and his firm to conduct a thorough investigation.

The decision follows an announcement on Sunday that the board was examining reports that Huang had been targeted by a foreign intelligence operation.

Nvidia said it had no reason to believe that either U.S national security or the company’s confidential information had been compromised, but that the inquiry would examine all available evidence.

The board added that it continued to have confidence in Huang’s leadership.

In an extraordinary message to Nvidia employees on Sunday, Huang acknowledged his infidelity.

“I owe my family and all of you an apology,” he wrote.

“I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry.”

The Nvidia founder, who has helped turn the company into one of the world’s most valuable businesses, also addressed the security concerns.

“Regarding the national security concerns raised in news reports, NVIDIA’s Board of Directors has initiated an independent investigation. I support the investigation and will cooperate fully,” he said.

Nvidia’s chips are among the most sought-after technologies in the global race to develop artificial intelligence, with Washington restricting exports of its most advanced processors to China.

According to reporting by The Information, Alice Huang and business associates allegedly helped arrange shipments of at least US$7.5 billion worth of Nvidia chips to Chinese companies, some involving processors subject to U.S export restrictions.

Those allegations have not been established by Nvidia’s investigation.

The FBI is also examining the affair, while a shareholder lawsuit filed in California accuses Nvidia and Huang of misleading investors by failing to disclose his alleged relationship and the potential national security risks.

The civil allegations have not been proved, and the commencement of an investigation does not establish that Huang committed any offence.

Nvidia’s shares fell sharply following the initial revelations, wiping billions of dollars from its market value as investors assessed the possible implications for the company’s leadership and business dealings.

Huang has pledged to cooperate with the independent inquiry, which will examine whether any company information or national security interests were compromised.

Nvidia has not announced when the investigation will conclude or when its findings will be made public.

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_{Main image: Nvidia founder and chief executive Jensen Huang presents the company’s technology at the ACM/IEEE Supercomputing Conference in 2018. The billionaire is now at the centre of an independent investigation into national security concerns following reports of his affair with a woman suspected of spying for China. Huang has publicly apologised for his infidelity and pledged to cooperate fully with the inquiry. Credit: Raysonho @ Open Grid Scheduler / Wikimedia Commons (CC0 – Public Domain)}