Nvidia hires law firm Wachtell Lipton to lead Jensen Huang affair probe

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 co-founder and CEO, leaving the company.