Nvidia's board was reportedly preparing to discuss Jensen Huang's future after The Wall Street Journal reported that it was considering removing the company's founder and CEO.
The latest controversy follows a New York Times report alleging a second relationship with Nvidia executive Kimberly Powell, after Huang had acknowledged being unfaithful to his wife.
The developments have raised questions about Nvidia's leadership and unsettled investors, although the company has not confirmed a decision to remove Huang.
Nvidia Board Reportedly Moves To Oust CEO Jensen Huang After Second Affair Allegation
Nvidia's board is reportedly considering removing CEO Jensen Huang after allegations of a second extramarital relationship surfaced, adding to an ongoing controversy involving claims of Chinese intelligence links and a company investigation
Summary
Nvidia's board of directors is preparing to remove founder and chief executive Jensen Huang following reports of two extramarital relationships, including one involving a woman suspected by US intelligence officials of having links to Chinese espionage, according to The Wall Street Journal. The board was expected to meet as early as Wednesday, November 11, to discuss Huang's future at the world's leading artificial intelligence chipmaker. The reported move marks a dramatic escalation in a controversy that has already triggered an independent investigation into whether Huang was targeted by a foreign intelligence operation.
The latest developments follow a report by The New York Times that Huang had a second extramarital relationship with Kimberly Powell, Nvidia's vice-president of healthcare, who reportedly worked under him. The newspaper, citing people familiar with the matter, reported that the two were seen behaving affectionately at a hotel in San Jose, California, during an Nvidia conference in March. Reuters said it could not independently verify the report. Neither Huang nor Powell had publicly commented on the allegation at the time of reporting.
Second Affair Report Adds To Pressure On Nvidia CEO
Huang, 63, acknowledged in a message to employees on November 8 that he had been unfaithful to his wife, apologising to his family and colleagues. The admission followed reports about his relationship with Alice Huang, a Chinese businesswoman associated with Megaspeed, an Nvidia customer. US intelligence officials reportedly suspect Alice Huang of having links to Chinese intelligence and of facilitating access to Nvidia technology. These claims remain allegations, and China has rejected the espionage accusations as unsubstantiated.
Nvidia's board had initially expressed confidence in Huang while announcing an independent investigation into whether he had been targeted by a foreign intelligence operation. The inquiry is being overseen by independent directors with assistance from outside legal counsel. The board said it had no reason to believe that US national security or Nvidia's confidential information had been compromised, but that it would examine all available information.
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Huang's Possible Exit Raises Questions Over Nvidia's Future
Huang co-founded Nvidia in 1993 and has led the company throughout its 33-year history, overseeing its transformation into a central supplier of chips used in artificial intelligence systems. His potential departure could create uncertainty at the company, which has no publicly identified successor. Analysts have also warned that his close involvement in Nvidia's strategy and operations could make a leadership transition difficult.
The reports have also unsettled investors. Nvidia shares fell about 8 per cent in after-hours trading on November 11 following the reports about the board's plans. The company has not publicly confirmed that it has decided to remove Huang, and the reported board discussions should not be treated as a final dismissal decision.
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