Nvidia has appointed a top US law firm to investigate CEO Jensen Huang’s alleged links to a woman suspected of being a Chinese intelligence operative, as the FBI conducts a separate probe into the matter. The controversy has rattled investors, wiping $500 billion off the chipmaker’s market value in days.
Nvidia Appoints Top US Law Firm For Independent Probe
The company announced on Tuesday that it had hired New York-based law firm Wachtell, Lipton, Rosen & Katz to conduct an independent investigation into the matter. Attorney Joon Kim, a former US Attorney for New York’s Southern District, will lead what Nvidia described as “a thorough and independent investigation”.
The board had approved the inquiry on Sunday, saying there was no reason to believe that Nvidia’s confidential information or US national security had been compromised. An independent committee of directors will oversee the investigation.
The FBI is also conducting a separate investigation. Wachtell is among America’s most prominent law firms and has represented major technology companies, including OpenAI and Salesforce.
The inquiry is expected to receive urgent attention given Huang’s position as the public face of Nvidia and one of the most influential figures in the artificial intelligence industry. He has frequently described AI as a “new industrial revolution”, comparing its impact to the arrival of electricity.
It remains unclear whether investigators will be able to interview Alice Huang. Nvidia has also declined to comment on whether its CEO has appointed separate legal representation.
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Nvidia Shares Slide As $500 Billion In Value Disappears
The controversy has taken a toll on Nvidia’s stock, with its shares falling close to their annual low. The company has lost around $500 billion (£375 billion) in market capitalisation since Friday.
The development is significant given Nvidia’s central role in the global AI industry. Its advanced chips power several AI applications, making the company a critical player in the technology race between the United States and China.
Nvidia is currently the world’s second most valuable company after Apple. Washington also considers its chip technology strategically important to maintaining America’s lead in artificial intelligence.
Who Is Alice Huang And What Is Her Nvidia Connection?
Alice Huang, also known as Huang Le, previously worked as an executive at Megaspeed, a Singapore-based company that purchased Nvidia products. She is not related to Jensen Huang.
Megaspeed had faced allegations of helping divert Nvidia chips to China. However, Nvidia maintains that an investigation into those concerns found them to be unfounded. The company has also said the US government never informed it that Megaspeed posed an intelligence threat.
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The controversy has also drawn attention in Washington. Reports suggest that US Secretary of State Marco Rubio sent a memo to senior officials earlier this year flagging Huang’s close association with a woman suspected of having links to Chinese intelligence.
China has rejected the allegations, with its Foreign Ministry accusing those making them of attempting to smear the country.
US President Donald Trump said on Monday that he had spoken to Huang. According to Trump, the Nvidia chief told him he had “no idea she was a spy”. The US President said he believed Huang’s explanation.
Meanwhile, senior lawmakers from the House Foreign Affairs Committee have requested a closed-door briefing with Huang next week. His attendance has not been confirmed. The committee can issue a subpoena if it decides to compel him to appear.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: abplive.com
