Nvidia's independent directors assigned an outside law firm and former federal prosecutor to review allegations involving CEO Jensen Huang, with CNBC reporting the inquiry will examine possible risks to company secrets and national security.
The board said Tuesday that Wachtell, Lipton, Rosen & Katz and Joon H. Kim, a former acting U.S. attorney for the Southern District of New York, will handle the review. Directors announced the earlier inquiry into reports of a foreign intelligence effort on Sunday. At the time, the board said it had no reason to believe company secrets or national security had been compromised.
The New York Times and Financial Times reported that U.S. intelligence agencies surveilled Alice Huang, an Asian technology executive affiliated with Megaspeed, an Nvidia customer. The papers said the agencies concluded she was passing information to Beijing and involved with Chinese intelligence.
CNBC reported that politicians and other critics have questioned Nvidia's knowledge of sales of restricted AI chips to Chinese companies. Nvidia shares fell 6% Tuesday after dropping more than 4% Monday, the outlet reported. CNBC said investors were concerned the inquiry and scandal could threaten Huang's position. The company said Sunday that Huang planned to remain in the chief executive role.
