Nvidia board taps Wachtell Lipton to probe Huang affair

Nvidia's independent directors have hired former acting U.S. Attorney Joon H. Kim and his firm, Wachtell, Lipton, Rosen & Katz, to investigate CEO Jensen Huang's relationship with a woman U.S. officials suspect of spying for China. In a short statement on Tuesday, the board said Kim would "conduct a thorough and independent investigation as was announced on Sunday". Kim previously served as acting U.S. attorney for the Southern District of New York.nvidianews.nvidia.com+1

Naming Kim puts a seasoned prosecutor in charge of a probe that has become a national security matter for the world's most valuable chipmaker. Kim is a Wachtell partner who focuses on high-stakes litigation and regulatory enforcement, and the firm will advise Nvidia's board on the inquiry, The New York Times reported.nytimes.com

Board says no secrets compromised

The board opened the investigation on Sunday, Nov. 8, after Huang admitted the affair. It said a committee of independent directors, assisted by outside counsel, would oversee the review. The board said it had "no reason to believe that either national security or NVIDIA secrets were compromised" but that its inquiry "will examine all available information". It also said it had confidence in Huang, 63, who will keep running the company while the investigation is underway.inquirer.com+1

Huang apologized in a message to employees. "I was unfaithful to my wife," he wrote. "There is no excuse for what I did. I am deeply sorry." He added, "I support the investigation and will cooperate fully".news.sky.com

Alleged spy tied to Megaspeed

The woman is Alice Huang, a former executive at Singapore-based data center company Megaspeed. The New York Times reported that U.S. intelligence officials believe China's Ministry of State Security recruited her. U.S. authorities have looked into whether Megaspeed helped send advanced Nvidia chips to China in violation of export controls. Beijing called the allegations "baseless and purely slanderous smears".abc11.com+1

Legal and political pressure mounts

President Donald Trump said Monday that the FBI is "looking into" the affair. He said Huang told him he did not know the woman could be involved in espionage. A shareholder also filed a proposed class action in California, accusing Nvidia and Huang of misleading investors. The chairs of three House committees have asked Huang to attend a closed-door briefing on Nov. 18.itv.com+1

Nvidia shares fell on Monday and kept falling on Tuesday. Analyst Dan Ives pointed to the company's lack of a clear successor. "There's no true succession plan," he said. "He's kind of irreplaceable".inquirer.com+1