‘Nvidia needs a dramatic shake-up’: Why Scott Bessent wants an outsider as CEO after Jensen Huang scandal
US Treasury Secretary Scott Bessent has called for a “dramatic shakeup” in Nvidia’s leadership, suggesting that the chipmaker should look outside the company for its next chief executive after Jensen Huang’s departure.
Speaking on Fox News, Bessent questioned Nvidia’s corporate culture and its alleged role in facilitating the sale of advanced artificial intelligence (AI) chips to Chinese entities through shell companies, including those based in Singapore.
“This makes me think that as the board conducts a search for a new leader that they need to go outside the company,” Bessent said. “They needed a dramatic shakeup.”
Quick answers to key questions
•5 QUESTIONS
1
Why does Scott Bessent want Nvidia to hire an outsider as CEO?⌵Bessent says Nvidia needs a “dramatic shakeup” after questions about its corporate culture and whether it overlooked warning signs of alleged chip sales to China. He believes the board should look outside the company for its next CEO.
2
What allegations have raised questions about Nvidia’s leadership and chip sales to China?⌵Nvidia has faced questions over whether advanced AI chips reached Chinese entities through shell companies, including ones based in Singapore. Bessent questioned whether the company ignored warning signs to increase revenue and earnings; the allegations are under scrutiny.
3
Who is Nvidia’s interim CEO after Jensen Huang’s departure?⌵Nvidia has named Chief Financial Officer Colette Kress as interim CEO following Huang’s departure.
4
Is Arm CEO Rene Haas being considered to succeed Jensen Huang at Nvidia?⌵The Financial Times reported that Nvidia’s board approached Arm CEO Rene Haas as a potential successor. Haas previously worked at Nvidia for around seven years and has professional relationships with Huang and board members.
5
What answers has Scott Bessent requested from Nvidia’s board?⌵Bessent said Nvidia’s board and external legal counsel must provide answers within the next 10 days. He has questioned the company’s culture and its handling of warning signs about potentially illicit chip sales.
Bessent also questioned whether Nvidia had deliberately overlooked warning signs of potentially illicit chip sales to China to boost its revenue and earnings.
“I want to keep coming back to what was the culture at Nvidia, and were they pressing these seemingly illicit sales to goose their revenues and their earnings?” he said.
The Treasury Secretary said Nvidia's board and external legal counsel must provide answers within the next 10 days.
“If this were a bank and they hadn’t complied like this, the OCC would be in there right now, and a lot of the executives would be removed,” Bessent said, referring to the Office of the Comptroller of the Currency.
Meanwhile, Nvidia's board has approached Arm Holdings CEO Rene Haas as a potential successor to Huang, the Financial Times reported on Friday, citing people familiar with the matter.
Haas, who has led the SoftBank-backed British chipmaker since 2022, is among the names being considered as Nvidia explores leadership options following Huang's departure, according to the report.
Haas previously worked at Nvidia for around seven years, more than a decade ago. He is also understood to maintain strong professional relationships with Huang and several members of Nvidia's board.
Nvidia has named Chief Financial Officer Colette Kress as interim CEO following Huang's departure.
Jensen Huang has resigned as chief executive officer of Nvidia after 33 years at the helm of the artificial intelligence chipmaker.
Huang's departure on Thursday comes amid mounting scrutiny over reports of his alleged extramarital relationships, including one involving Chinese businesswoman Alice Huang, whom some US intelligence officials reportedly suspect of having links to Chinese intelligence services.
The controversy had earlier intensified following reports of another alleged relationship involving Kimberly Powell, Nvidia's vice president of healthcare, who reports to Huang.
Reuters, citing two people familiar with the matter, also reported that Huang had an intimate relationship with a second company employee, adding to questions surrounding his personal conduct and leadership.
Huang co-founded Nvidia in 1993 and spent more than three decades building the company into one of the world's most influential suppliers of artificial intelligence chips. Under his leadership, Nvidia emerged as a central player in the global AI boom, with its processors powering data centres and advanced AI systems worldwide.
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