Nvidia Launches Independent Probe into Allegations Against Jensen Huang

Nvidia has initiated steps to investigate allegations surrounding its CEO, Jensen Huang, and his reported relationship with Alice, a woman alleged to have links to Chinese intelligence. The company has appointed the law firm Wachtell, Lipton, Rosen & Katz to conduct an independent investigation into the matter. The firm is known for handling complex corporate litigation and high-profile investigations. Jun H. Kim, a partner at the firm, previously served as an attorney for the Southern District of New York. In 2021, he led an investigation into sexual harassment allegations against former New York Governor Andrew Cuomo. Nvidia had earlier announced that its board would review the matter. However, the company said it did not believe that issues involving national security or leaks of its confidential information had occurred. It added that the board would examine all available information and that Huang would fully cooperate with the review.

Meanwhile, Nvidia is facing tough questions from investors. Shareholders have filed a lawsuit against the company and Huang in a California court, alleging that Nvidia misled investors about Huang's reported relationship with Alice. Reports also indicate that all 10 members of the company's board have longstanding professional relationships with Huang, raising questions about the independence of the review. The allegations have also affected Nvidia's stock performance. On Tuesday, the company's shares fell by more than 6 per cent in the US market, briefly causing Nvidia to lose its position as the world's second-most valuable company to Microsoft. This was the first time such a change had occurred since June last year. The independent investigation and the shareholder lawsuit are now adding to the scrutiny surrounding the company.