Nvidia Hires Wachtell Amid $500bn Drop and Spy Claims

By Olivia Hart

BBC reported that Nvidia has lost $500bn (£375bn) in market value since Friday, leaving its shares almost at a yearly low.

Nvidia said on Tuesday that it had hired New York law firm Wachtell, Lipton, Rosen & Katz. Its attorney Joon Kim will lead “a thorough and independent investigation,” according to the company. The BBC also reported that the FBI is conducting a separate probe.

The review centers on Nvidia co-founder and chief executive Jensen Huang, who has admitted to a romantic relationship outside his marriage, according to the report. The woman, Alice Huang, is alleged to be a spy for Beijing.

What has Nvidia authorized?

Nvidia's board announced the investigation on Sunday and said it had no reason to believe the company's secrets or national security had been compromised. A committee of independent directors will oversee the probe. The announcement gave no timetable, detailed mandate or disclosure plan for findings.

The structure provides independent oversight in form, but Nvidia did not say whether Huang would step aside, whether investigators could interview witnesses or how the review would coordinate with the FBI. Those omissions leave questions about the boundaries between personal conduct, chip-distribution scrutiny and a parallel federal inquiry.

Nvidia has ordered an independent review without publishing its timetable or detailed terms.

What do US authorities know?

The New York Times reported that Secretary of State Marco Rubio sent a memo to top officials in Washington earlier this year. The memo warned that Jensen Huang was in a close relationship with a Chinese spy, according to the newspaper.

US President Donald Trump said on Monday that he had spoken to Huang. Huang told Trump he had “no idea she was a spy,” Trump said, and Trump said he believed him. The report did not identify any evidence Huang provided or describe the conversation.

Beijing has rejected the claims. Its foreign ministry said the allegations were “intended to smear and malign China.” The BBC reported that congressional leaders of the House Committee on Foreign Affairs have asked Huang to appear next week for a closed-door briefing.

Huang has not said whether he will attend, a person familiar with the committee's demand told the BBC. The committee can subpoena him, which would effectively force an appearance if it deemed that necessary.

The next test is procedural: Huang must decide whether to accept a private briefing or risk a subpoena.

Why does Megaspeed matter?

Alice Huang, also known as Huang Le, is not related to Jensen Huang. She was an executive at Singapore-based Megaspeed, a Nvidia customer, according to the report.

The report said Megaspeed had been suspected of helping divert Nvidia chips to China. Nvidia said that concern had been investigated and debunked. The company also maintained that the US government did not inform it that Megaspeed posed an intelligence concern.

The report presented no evidence connecting Megaspeed's chip-diversion scrutiny to an espionage finding against Alice Huang. It also reported no finding that Nvidia's secrets were compromised, consistent with the board's Sunday statement.

Megaspeed links the case to Nvidia's China business, but the report provides no evidence that the diversion allegations were upheld.

Why is this bigger than one executive?

The report describes Nvidia as one of the most important companies behind the AI boom because it is the sole manufacturer of a computer chip used in AI tools. Nvidia is the world's second most valuable company after Apple, the report said. Its chips have become a national-security concern for US officials seeking to win the AI race.

Huang has become a key public figure in AI development. He argues that the technology is a “new industrial revolution” and is on par with the advent of electricity, according to the report. Sources familiar with the matter said the investigation will likely be treated as urgent because Huang's public image is tightly intertwined with Nvidia.

The report described Wachtell as one of the largest US law firms, with OpenAI and Salesforce among its notable technology clients. Kim is a former US Attorney for New York's Southern District. He spent several years as a government attorney focused on fraud and other criminal acts.

The case touches Nvidia's AI leadership, national-security exposure and founder reputation, which explains the likely urgency.

Can investigators reach Alice Huang?

It is unclear whether Wachtell will be able to interview Alice Huang, the report said. A Nvidia spokesperson declined to comment on Tuesday when asked whether Jensen Huang had retained personal legal representation amid the company investigation and the separate FBI probe.

That nonanswer leaves two practical uncertainties: whether Huang is separately represented and whether the company review and federal investigation will exchange information. The source provided no information on either point. It also did not say whether Huang would answer the congressional request.

The next verifiable steps are narrow: whether Huang accepts next week's briefing and whether Wachtell can interview Alice Huang. Their answers could indicate whether the review remains centered on Huang's conduct or reaches Nvidia's China-facing chip business.