Nvidia Faces CEO Ouster Over Second Affair Allegation
Nvidia’s board considers removing CEO Jensen Huang after second affair allegation, including spy suspicions.
2 min read
Nvidia, one of the world’s most valuable companies, is reportedly moving to remove its founder and CEO, Jensen Huang, following his admission to two extramarital affairs. The Wall Street Journal reported that the board is preparing to vote on his removal, with a potential meeting as early as Wednesday. The decision comes after Huang acknowledged the infidelity in a letter to employees, apologizing for breaking the trust of his family and staff.
The affair involving Alice Huang, an executive at Singapore-based data firm Megaspeed, has drawn significant attention. American intelligence officials suspect Alice Huang of spying for China, with reports indicating she may have facilitated the movement of over $7 billion in Nvidia chips to China. Alice Huang, who shares the same surname as the CEO but is not related to him, is an executive at Megaspeed, which is Nvidia’s largest Southeast Asian customer and has faced U.S. scrutiny over suspected chip smuggling. Both companies have denied any wrongdoing, while Beijing has rejected the spying allegations as false.
The second affair involved an executive who reports directly to Huang, according to The New York Times. Nvidia’s board has launched an independent investigation into the espionage allegations, hiring law firm Wachtell, Lipton, Rosen & Katz to review the claims. Huang is set to continue running the company during the inquiry, with the board stating there is no evidence of national security or company secrets being compromised.
Nvidia shares dropped more than 9% in after-hours trading following the news of the potential ouster. The company has no public succession plan, and Huang has long resisted the idea of a formal transition, preferring to pass on his knowledge gradually. The board is expected to consider an interim leader, with lead independent director Stephen Neal among the potential candidates.
Breaking: Nvidia’s board is preparing to oust CEO Jensen Huang after he had two extramarital affairs, including one with a suspected Chinese spy. https://t.co/Pjsu5j87CF https://t.co/mrsySLr8sd
President Donald Trump has defended Huang, calling him an “amazing guy” and an “honorable man.” Trump stated that Huang was unaware the woman involved in the affair was a suspected spy. The president’s approvals of Nvidia chip sales to China now face review from lawmakers. Meanwhile, several members of Congress have called for Huang to resign, with momentum building toward a potential subpoena.
The allegations have sparked a broader debate about corporate accountability and national security. As the board moves forward with its investigation, the future of Nvidia’s leadership remains uncertain, with significant implications for the company and its global operations.
Source: Daily Caller
