Nvidia Is Preparing To Oust CEO Jensen Huang, WSJ Reports
Detailed summary
Earlier in the day, the New York Times reported that Huang had an extramarital affair with a company executive who reported to him.
Nov 11 (Reuters) - 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 on Wednesday, citing people familiar with the matter.
The board is preparing to meet as soon as Wednesday to determine his future, the report added.
Huang’s potential departure would leave a leadership vacuum at the roughly $4 trillion chipmaker he co-founded and built over more than three decades to become the dominant supplier of AI chips at the center of the global artificial-intelligence boom and US-China technology rivalry.
The company’s shares slid about 8% in after-hours trading. Including Wednesday’s after-hours selloff, Nvidia has lost about $600 billion in stock market value this week since the board announced its investigation.
“Huang being removed immediately could be challenging for Nvidia since it does not have a succession plan in place ... If Mr. Huang broke the law or violated company policies, the board is likely to act as soon as they have proof,” Gil Luria, head of technology research at D.A. Davidson, said.
Earlier in the day, the New York Times reported that Huang had an extramarital affair with a company executive who reported to him.
The relationship was with Kimberly Powell, Nvidia’s vice president of healthcare, the New York Times said, citing five people who worked at the company.
When reached by phone Wednesday and asked about his relationship with Ms. Powell, Mr. Huang said, “I don’t think you should be talking to me directly.” He then hung up, the New York Times reported.
Nvidia and Powell did not immediately respond to requests for comment. Reuters could not immediately verify the reports.
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