Elon Musk says some of Nvidia’s 'critical' deals could be lost without Jensen Huang

Detailed summary

Elon Musk warned Nvidia could lose important supply chain deals after Jensen Huang’s departure, saying several agreements depended on personal relationships. | World News

Elon Musk has warned that Nvidia could lose some of its important supply chain agreements following Jensen Huang’s departure as CEO, arguing that several of the chipmaker’s business arrangements depended heavily on personal relationships. The Tesla and SpaceX chief said Huang had built partnerships based on trust and direct understanding, raising questions about whether those agreements will remain in place under new leadership.

Musk shared his comments on X on Saturday, November 14, pointing to Huang’s role in managing Nvidia’s suppliers and securing business arrangements. He suggested that some partners had agreed to work with Nvidia because of their relationship with Huang rather than through conventional written contracts.

“Jensen drove supply chain brilliantly at Nvidia, but many of those deals were a handshake with Jensen, not a written contract,” Musk wrote. He added, “Without Jensen, at least some of those critical deals will be lost.”

His remarks have brought attention to a possible challenge for Nvidia as it prepares for a leadership transition. The company is one of the world's biggest suppliers of processors used in artificial intelligence systems, making its relationships with manufacturers, suppliers and other business partners important to its operations.

Musk’s latest comments follow his public support for an effort to bring Huang back to the top position at Nvidia. On Friday, the billionaire said he would sign a petition seeking the co-founder’s reinstatement.

“A petition is underway to reinstate Jensen and I’m signing it too,” Musk wrote on X.

Also Read: ‘He always came through’: Elon Musk praises Jensen Huang, warns Nvidia could lose ‘critical’ deals without him

He had also indicated that he would welcome the opportunity to work with Huang. The response came after a social media user suggested that Musk should hire the former Nvidia chief. Musk replied, “That would be an honor.”

Huang's departure followed reports about his alleged extramarital…

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