- Nvidia board to discuss CEO Jensen Huang's potential removal.
- Allegations include affairs and links to suspected Chinese intelligence.
- Huang's departure could create major leadership challenges for Nvidia.
Nvidia CEO Jensen Huang could be on the verge of losing his top position at the company, as reports suggest that the board of directors is preparing to discuss his possible removal. The development comes amid growing controversy over allegations about Huang's personal relationships, including claims of an alleged affair with a woman suspected of having links to Chinese intelligence.
Board Weighs Removal
According to reports by The Wall Street Journal and CBS News, the board could meet as early as Wednesday to discuss his future. The reported development has also drawn the attention of the Trump administration, adding to the growing pressure surrounding the 63-year-old billionaire, who has led Nvidia for more than three decades.
Huang's Affair With Nvidia Employee Comes To Light
The controversy involves two separate reports about Huang’s alleged relationships. The New York Times reported that Huang was allegedly involved with Kimberly Powell, Nvidia's vice president of healthcare, who reportedly worked under him. The newspaper cited five former employees who claimed to have knowledge of the relationship. It also reported that the two were seen behaving affectionately at a hotel during Nvidia's GTC developer conference in San Jose in March.
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According to the report, someone recorded the interaction on the phone, but Huang's security team noticed and confronted the person. The individual was reportedly asked to sign a non-disclosure agreement. The largest row began after Huang on Monday admitted that he was unfaithful to his wife and has issued an apology to his family and employees.
His statement came as the chipmaker company began an independent investigation into reports linking him to Alice Huang, a Chinese businesswoman suspected by US intelligence agencies of working for Beijing. According to an email sent to Nvidia employees, Huang accepted responsibility for his personal actions and admitted that he had hurt his wife and children. He expressed regret over his behaviour and said there was no excuse for what had happened.
In his message, Huang wrote, "I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry," Axios reported. However, he didn't mention any names.
What Happens If He Is Removed?
If Huang leaves Nvidia, the company could face a major leadership problem. Huang co-founded the company and has led it for more than 30 years, helping it become one of the world's biggest suppliers of AI chips. Nvidia is currently valued at around USD 4 trillion and plays a major role in the global AI industry and the technology competition between the US and China.
The situation is complex as Huang also does not have a clear successor who could immediately take over. He owns around 3.6 per cent of Nvidia's shares and has dozens of employees reporting directly to him. Reuters quoted Gil Luria, head of technology research at DA Davidson, who said removing Huang suddenly could be difficult because Nvidia does not have a clear succession plan.
He added that the board would likely take action if it found proof that Huang had broken the law or company rules. Meanwhile, Nvidia's shares fell around 8 per cent in after-hours trading after The WSJ reported that the company was preparing to remove Huang as CEO.
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