Nvidia Board Weighs Removing CEO Jensen Huang Over Affairs and Security Concerns

Nvidia's board is preparing to remove CEO Jensen Huang after reports revealed he had two extramarital affairs, including one with a suspected Chinese spy. The board scheduled a meeting to decide his future. Huang's potential exit creates a big leadership gap at the four-trillion-dollar chipmaker he helped start over thirty years ago. Nvidia shares dropped about eight percent in after-hours trading. The company has lost about six hundred billion dollars in market value this week since the board began its investigation. Gil Luria, head of technology research at D.A. Davidson, said removing Huang right away could prove tough because the company lacks a backup plan. The New York Times reported that one affair was with Kimberly Powell, Nvidia's vice president of healthcare. When asked about the relationship by phone, Huang told a reporter not to call him directly and hung up. Nvidia and Powell did not immediately reply to requests for comment. The controversy grew from earlier reports about Huang's relationship with Alice Huang, a woman US intelligence linked to helping ship Nvidia chips to Chinese firms. In a Sunday memo to staff, Huang admitted to being unfaithful to his wife and took full responsibility. The board started an independent probe with outside lawyers. US President Donald Trump stated he had not talked about the claims with Huang but called him an honorable person who did a great job for the country. Huang also faces a possible congressional subpoena if he skips a request for a closed-door briefing on his ties to the Chinese businesswoman.

Context

Nvidia is a key player in the global technology industry because its advanced computer chips power the current artificial intelligence boom. Chief executive departures at such massive firms often trigger sudden stock market drops and raise questions about future business direction. Company boards must investigate potential security risks and policy breaches involving top leaders to protect corporate interests and national security.