WASHINGTON, Nov. 12 (GO WORLD) — Nvidia has appointed a prominent US law firm to investigate whether its chief executive, Jensen Huang, was targeted by Chinese intelligence, escalating a controversy that has drawn the attention of the FBI, Congress and investors.
The world’s leading artificial intelligence chipmaker has hired Wachtell, Lipton, Rosen & Katz to conduct an independent inquiry into Huang’s relationship with Alice Huang, a Chinese businesswoman whom US intelligence officials reportedly identified as an agent working for Beijing.
The investigation will be led by Joon Kim, a former federal prosecutor, and overseen by independent members of Nvidia’s board.
Huang, 63, has acknowledged being unfaithful to his wife and apologised to his family and Nvidia employees. He has not publicly confirmed that he knew the woman was involved in intelligence activities.
President Donald Trump said Monday that the FBI was examining the matter but expressed confidence in Huang, saying the executive had told him he was unaware of the woman’s alleged intelligence connections.
China has rejected the espionage allegations, describing them as baseless accusations intended to discredit Beijing.
Questions Over Chip Sales to China
The controversy has expanded beyond Huang’s personal conduct to the movement of advanced American technology into China.
The Information reported Tuesday that Alice Huang and business associates helped facilitate shipments of at least $7.5 billion worth of Nvidia chips to Chinese companies through a network operating in Singapore and China.
The report alleged that approximately 240,000 advanced processors, including H100 and H200 chips, were obtained through arrangements that have raised questions about compliance with US export restrictions.
Those allegations have not been independently established, and it remains unclear whether Huang personally authorised or knew about any improper transactions.
Nvidia’s board said it had no reason to believe company secrets or US national security had been compromised, but promised to examine the available evidence.
Investors Seek Answers
The allegations have also triggered legal action.
A proposed shareholder class-action lawsuit filed in California accuses Nvidia and Huang of failing to disclose information that investors argue could have affected the company’s reputation and financial outlook.
Nvidia shares fell more than 4% on Monday following the announcement of the investigation, wiping approximately $190 billion from its market value.
The controversy comes at a sensitive time for Nvidia, whose advanced processors have become central to the global race to develop artificial intelligence.
US lawmakers are already considering tighter controls on advanced semiconductor exports to China, and the latest allegations could strengthen calls for additional restrictions.
Nvidia has said Huang will continue leading the company during the investigation and that its board retains confidence in his leadership.
No timetable has been announced for the inquiry’s completion.
The central question now is whether the relationship exposed sensitive commercial information or influenced the sale of restricted American technology. Neither outcome has been established.
GO WORLD | Technology Desk
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