Nvidia retained Wachtell, Lipton, Rosen & Katz after Jensen Huang admitted to an extramarital affair with an individual tied to Chinese intelligence by prominent news outlets. Former acting U.S. Attorney Joon H. Kim will direct the independent probe into whether sensitive corporate or national security information was compromised. This inquiry coincides with broader questions concerning Nvidia's knowledge of restricted AI chip sales to Chinese entities. Amid fears that the scandal might ultimately unseat the company's co-founder, Nvidia's stock slid 6% on Tuesday.
Key points
Wachtell Lipton will examine whether company secrets or critical national security assets…: Wachtell Lipton will examine whether company secrets or critical national security assets were compromised by the chief executive.
The personal scandal compounds existing scrutiny over Nvidia's awareness of restricted ar…: The personal scandal compounds existing scrutiny over Nvidia's awareness of restricted artificial intelligence chip sales to Chinese firms.
Nvidia's board faces significant leadership uncertainty as investors react negatively to…: Nvidia's board faces significant leadership uncertainty as investors react negatively to the prospect of losing the company's co-founder.
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Nvidia's board of directors said on Tuesday that it had hired Wachtell, Lipton, Rosen & Katz to conduct an investigation of CEO Jensen Huang and whether company secrets or national security was compromised.
On Sunday, Huang admitted to having an affair with a woman who has been connected to Chinese intelligence by reports in The New York Times and Financial Times.
"The independent members of the NVIDIA Board have retained former acting U.S. Attorney of the Southern District of New York Joon H. Kim and his firm Wachtell, Lipton, Rosen & Katz to conduct a thorough and independent investigation as was announced on Sunday," the board said in a statement.
Kim joined the firm earlier this month, according to Law360.
The announcement is part of Nvidia's efforts to stabilize the company as it has been thrown into turmoil over its chief executive's conduct, and new pressure over what Nvidia knew about sales of its restricted AI chips to Chinese companies.
Nvidia shares are down 6% on Tuesday as investors worry that the investigation and scandal could result in Huang, its…
Nvidia hires Wachtell Lipton to lead independent review into Jensen Huang affair. Nvidia hires Wachtell Lipton to lead independent review into Jensen Huang affair
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Federal authorities have launched a parallel probe into an extramarital relationship admitted by the chipmaker's chief executive. The controversy centers on the partner's ties to a corporate customer alongside allegations of espionage on behalf of Beijing. Bringing in outside counsel aims to establish an independent review as national security and corporate governance concerns escalate.