NVIDIA Launches Investigation into CEO Amid Chinese Intelligence Concerns
NVIDIA's Inquiry into CEO Jensen Huang
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New Delhi, Nov 11: NVIDIA, a leading chip manufacturer, has appointed Joon H. Kim, the former acting US Attorney for the Southern District of New York, to investigate whether its founder and CEO, Jensen Huang, was the target of a Chinese intelligence operation.
Kim's law firm, Wachtell, Lipton, Rosen & Katz, will support the investigation, as stated by the independent directors of NVIDIA.
The board emphasized that the national and economic security of the United States is crucial to both the company and its shareholders, promising to provide updates as necessary.
NVIDIA has indicated that it currently sees no evidence suggesting that US national security or proprietary information has been compromised, but it will review all relevant data.
In an email to employees, Huang expressed his support for the investigation, affirming his commitment to safeguarding NVIDIA and national security. He stated, "I love our country and our company. I am committed to protecting NVIDIA and supporting America's national security," and acknowledged his accountability for his actions and the resulting criticism.
Huang also requested privacy for his family, clarifying that they should not be held accountable for his decisions.
On Tuesday (US time), NVIDIA shares closed at 8.8, down 0.8744, or 5.53 percent, from the previous close of 8.67. The company's market capitalization is approximately $0.07 trillion.
The stock has faced ongoing selling pressure, dropping 14 percent over the past week and 22 percent in the last 30 days.
Over the past three months, NVIDIA's shares have decreased by 18 percent and by 17 percent over six months.
This recent decline has resulted in NVIDIA falling behind Microsoft in global market capitalization rankings, with Microsoft regaining its status as the world's second-most valuable company.
NVIDIA's upcoming quarterly results, set for November 17, are anticipated to shed light on the demand for AI chips and the company's future prospects.