- Nvidia hires law firm to probe CEO's alleged spy affair.
- Investigation follows FBI probe amid national security concerns.
- CEO Jensen Huang admits past relationship with alleged Chinese spy.
Nvidia CEO Row: US chipmaker Nvidia has hired prominent American law firm Wachtell, Lipton, Rosen & Katz to probe allegations surrounding a relationship between its CEO Jensen Huang and a woman accused of working for Chinese intelligence. The announcement was made amid a separate probe by the FBI and scrutiny from the US regulators over national security. In its statement, Nvidia stated that the law firm has been hired to conduct a "thorough and independent investigation".
What Prompted Decision?
Earlier, Jensen Huang admitted to having a romantic relationship outside his marriage; however, the co-founder, stated that he was not aware of her partner being a Chinese spy. Alice Huang, the woman, allegedly worked for the Beijing intelligence. The firm's share fell significantly following the revelation, wiping out around 500 billion US dollars since Friday.
The firm has still shown confidence in Jensen, confirming that he will continue to lead amid the investigation. Nvidia has also stated that there was no reason to believe that the company's trade secrets or the nation's security were compromised by its CEO.
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Who Is Alice Huang?
The suspected Chinese spy worked at Megaspeed, a regular customer of Nvidia. While the Singapore-based firm was accused of diverting the chips to China, Nvidia cancelled such reports after conducting a probe. It also asserted that the security concerns regarding Megaspeed were also not raised by the US authorities. However, the latest revelations have again raised the security concerns and misuse of Nvidia's chips as the US and China compete in the AI race.
China's Response
Amid the row, China has denied any role in the controversy, adding that the reports were being published to malign the country's image. Earlier, US President Donald Trump also expressed confidence in Jensen by stating that the NVIDIA co-founder was not aware of dating a Chinese spy. However, as per the New York Times, US Secretary of State Marco Rubio had informed senior officials about a relationship between Jensen and a Chinese spy.