Nvidia board moves to remove Jensen Huang as CEO amid espionage controversy

Detailed summary

Nvidia’s board is reportedly considering ending Jensen Huang’s 33-year leadership of the chipmaker following allegations surrounding his personal relationships and ...

Nvidia’s board is reportedly considering ending Jensen Huang’s 33-year leadership of the chipmaker following allegations surrounding his personal relationships and a suspected Chinese intelligence operation.

The Wall Street Journal reported on Wednesday, November 11, that the board was preparing to remove Huang, citing people familiar with the matter. Reuters subsequently confirmed that the board was meeting to discuss his future, although it could not independently verify the reported plan to oust him.

The controversy began after Huang admitted to having an affair with Alice Huang, a former executive of Singapore-based Megaspeed International. US intelligence agencies reportedly suspect she had links to Chinese intelligence, although the allegation has not been publicly established.

The company had earlier launched an independent investigation into whether its chief executive was targeted by a foreign intelligence operation. Nvidia said there was no reason to believe that its trade secrets or national security information had been compromised.

The latest development marks a reversal from the board’s earlier expression of confidence in Huang. Under Nvidia’s bylaws, the chief executive can be removed by a majority vote of directors.

The leadership uncertainty has already affected trading in the company’s shares. Nvidia fell more than eight per cent in extended trading following the reports, with its market value facing the prospect of losing about $600 billion since the controversy emerged.

Huang’s possible departure would leave a significant gap at the company. He co-founded Nvidia in 1993 and has remained at the centre of its product strategy, major business decisions and expansion into artificial intelligence.

The company has no publicly established succession plan. Its chief financial officer, Colette Kress, is among the executives being discussed as a possible interim replacement, while senior data-centre executive Ian Buck has also featured in succession discussions.

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