Could Jensen Huang exit Nvidia? Board reportedly works with outside firm to identify potential replacements
Nvidia Corp.'s board of directors has reportedly begun exploring potential replacements for Chief Executive Officer Jensen Huang following reports of multiple alleged extramarital affairs, including one involving a woman suspected of spying for China, Bloomberg News reported.
The board has been working with an external firm to identify possible successors to Huang, according to a person familiar with the matter who spoke to Bloomberg on condition of anonymity because the discussions are not public.
Directors are also considering the possibility of appointing an interim chief executive while searching for a permanent replacement, the person said, as per the news outlet.
Quick answers to key questions
•5 QUESTIONS
1
Is Nvidia considering replacing Jensen Huang as CEO?⌵Reports say Nvidia’s board is working with an outside firm to identify potential successors and has discussed Huang’s future. Nvidia has not publicly confirmed a decision to replace him.
2
Can Nvidia’s board remove Jensen Huang as CEO without a shareholder vote?⌵According to Nvidia’s bylaws, the board can remove an executive officer, including the CEO, with or without cause. The board also has authority to appoint a successor.
3
Would Jensen Huang lose his Nvidia board seat if he were removed as CEO?⌵No. The CEO and director roles are governed separately, so removing Huang as CEO would not automatically remove him from the board. Removing him as a director requires a separate shareholder process.
4
Could Nvidia appoint an interim CEO while it searches for a permanent successor?⌵Yes. Reports say the board is considering appointing an interim chief executive while it looks for a permanent replacement.
5
Why is Nvidia’s board reviewing Jensen Huang’s future as CEO?⌵The reported review follows allegations about Huang’s personal relationships, including one involving a woman suspected by US officials of links to Chinese intelligence. The board has also announced an independent investigation related to reports of a foreign intelligence effort.
Nvidia's board members were scheduled to meet on Wednesday to discuss Huang's future at the company, the news outlet stated citing people familiar with the matter.
Nvidia did not immediately respond to Bloomberg's request for comment.
Nvidia shares plunged more than 7% in early trading on Thursday as CEO Jensen Huang faced mounting pressure following reports of multiple extramarital relationships.
The revelations have reportedly triggered a crisis at the world's most valuable chipmaker, with the company's board assessing potential leadership implications.
The controversy escalated late Wednesday after The New York Times reported that Huang had also been involved in a relationship with Kimberly Powell, Nvidia's vice president of healthcare. Powell did not immediately respond to a request for comment Bloomberg said.
The company's shares have been under pressure for weeks amid reports surrounding Huang's alleged relationship with a suspected Chinese intelligence operative and growing concerns about a potential bubble in the artificial intelligence sector.
The controversy centres on Alice Huang, also known as Huang Le, a former executive at Megaspeed International, a Singapore-based company that is among Nvidia's largest customers in Southeast Asia.
The New York Times previously reported that US intelligence agencies had determined that Alice Huang was suspected of passing information directly to Beijing. US officials have accused her of having links to China's Ministry of State Security, the country's intelligence agency.
Megaspeed has faced scrutiny over allegations that it illicitly shipped advanced Nvidia chips to China. The Singapore-based company denied the allegations, saying there was no evidence that it had exported chips to China unlawfully. Singapore has also said it is investigating the allegations.
US President Donald Trump announced on Sunday that the FBI was investigating the matter. Beijing has rejected allegations that it attempted to spy on or compromise Huang through the relationship.
In a statement on Thursday, Megaspeed said it had cooperated with the US Department of Commerce's Bureau of Industry and Security (BIS), which oversees enforcement of national security-related export restrictions.
The company added that it was prepared to cooperate fully with any other relevant US government authority.
Megaspeed said it had hired a US law firm to conduct a comprehensive audit of its computer chip inventory and verify compliance with export controls.
"Megaspeed welcomes appropriate government scrutiny and is committed to demonstrating through concrete actions that it operates responsibly, transparently, and in accordance with applicable U.S. laws," the company said.
Nvidia, meanwhile, has denied wrongdoing in connection with the allegations, while China has dismissed claims that it sought to use Alice Huang to gather information on Jensen Huang.
The controversy comes at a sensitive time for Nvidia, whose chips have become central to the global artificial intelligence boom.
Huang has lobbied Washington to ease restrictions on Nvidia's chip sales to China, arguing that US companies should retain access to the Chinese market.
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