Nvidia board considers removing CEO Jensen Huang as second affair report emerges

UPDATE - follow-up to Nvidia prepares to oust Jensen Huang, WSJ reports — stock sinks: Nvidia shares dropped more than 8 percent in after-hours trading after reports that company directors are preparing to dismiss Chief Executive Officer Jensen Huang. The board planned to meet to decide his future. The development followed reports that Huang had a second extramarital relationship with Kimberly Powell, who serves as the company's vice president of health care and reports directly to him.

Details of Allegations

Huang and Powell were reportedly seen being affectionate at a hotel in San Jose, California, in March during the company's GTC developer conference. Rumors about the relationship had circulated within the firm for years, partly because Powell does not have a background in health or science. Powell has led the health care business group since 2017, a smaller sector for the company compared to its major revenue-generating AI systems and graphics processing units. Neither Nvidia nor Heller, the crisis public relations firm reportedly hired by Huang, responded immediately to requests for comment.

Spy Allegations and Board Inquiry

This follows days after Huang admitted to a separate affair with Alice Huang, a woman U.S. intelligence officials believe is a spy for China's Ministry of State Security. In a message sent to staff, Huang stated he was unfaithful to his wife and apologized. Nvidia's board opened an independent investigation into the spying allegations and hired the law firm Wachtell, Lipton, Rosen & Katz, along with former U.S. attorney Joon H. Kim, to handle the matter. Most of Huang's Nvidia shares, totaling about 800 million, are held in trusts co-owned with his wife, Lori Huang, while he holds roughly 70 million shares on his own.

Context

Jensen Huang has led Nvidia through the massive artificial intelligence boom, making the chipmaker one of the most valuable technology firms in the world. Corporate governance rules at major technology companies strictly scrutinize executive conduct and potential conflicts of interest, particularly when relationships involve direct subordinates.