Nvidia preparing to oust CEO Jensen Huang: report

Detailed summary

Nvidia’s board is preparing to oust CEO Jensen Huang after he had two extramarital affairs, including one with a suspected Chinese spy, the Wall Street Journal reported, citing…

Nvidia’s board is preparing to oust CEO Jensen Huang after he had two extramarital affairs, including one with a suspected Chinese spy, the Wall Street Journal reports, citing people familiar with the matter.

The board is preparing to meet as soon as Wednesday [Thursday AEDT] to determine his future, according to the report, in a move that risks major disruption to the $US4.1 trillion ($6 trillion) chip company that is vital to artificial intelligence development.

The New York Times reported that Huang, 63, had engaged in the second affair with one of his subordinates, 48-year-old Kimberly Powell. She is Nvidia’s vice president of healthcare.

Nvidia did not immediately respond to a request for comment. The reports come days after Huang acknowledged having been unfaithful to his wife of more than 40 years, Lori Huang, as Nvidia’s board investigates whether he was targeted by a foreign intelligence operation.

The woman who US intelligence agencies concluded had targeted Huang is called Alice Huang (no relation).

Nvidia’s shares were down more than 8 per cent in after-hours trading on the ousting report.

Jensen Huang founded Nvidia in 1993 and first built it into a successful maker of graphics cards before pivoting to artificial intelligence. Its chips in that sector are the best in the world, making them crucial in the geopolitical race for AI dominance.

The United States has restricted the sale of cutting-edge Nvidia chips to China. Alice Huang was the boss of a company called Megaspeed, which was based in Singapore and could therefore get around the blacklist to buy billions of Nvidia’s products.

Nvidia has also become critical to financing the broader AI sector by engineering hundreds of billions in loans to its customers to buy its chips. That has contributed to fears of an AI bubble and raised the prospect that Nvidia itself has become too big to fail.

Opening of the article, excerpted from The Sydney Morning Herald. To read the rest, open the article on the publisher's site.