Nvidia’s board of directors is preparing to remove co-founder and chief executive Jensen Huang, The Wall Street Journal reported, citing people familiar with the discussions. CBS News confirmed that the board is considering a change in leadership and that the administration of President Donald Trump is aware of the expected decision.
According to Bloomberg, the board is working with an outside firm to identify potential successors and is discussing the appointment of an interim chief executive until a permanent replacement is found.
Investigation Follows Huang’s Admission
Nvidia’s co-founder admitted to employees that he had had an extramarital affair. This led to an independent investigation by the board after reports raised suspicions that one of the women Huang had been linked to may have worked for Chinese intelligence.
Nvidia’s board hired the law firm Wachtell, Lipton, Rosen & Katz to determine whether company secrets or national security had been compromised. The company said there was no reason to believe that such data had been affected, but the investigation is ongoing. The Associated Press reported that the FBI is also looking into the case.
Musk Offers Huang a Job
Against the backdrop of the crisis, Elon Musk responded on the social network X to a suggestion that he hire Huang. “I would be honored,” Musk wrote, without specifying which of his companies he would offer the Nvidia chief a position at.
Huang has led the company since its founding in 1993 and is closely associated with its transformation into a key supplier of artificial intelligence chips. His possible replacement would therefore matter not only to Nvidia, but also to its investors, customers and partners.
Shares Fall Ahead of Results
Nvidia shares fell by more than 8% in after-hours trading following reports of Huang’s impending removal. The company is due to report its quarterly results on November 17, when investors will also be looking for clarity on the leadership.
Meanwhile, Huang’s mistress, Chinese businesswoman Alice Huang /the coincidence of their surnames is purely accidental/, whom U.S. intelligence agencies believe was recruited by China’s Ministry of State Security, has returned to her homeland, Bloomberg reported, citing sources familiar with the matter.
The founder of Megaspeed International currently lives in Beijing. According to one of the sources, her whereabouts are known to security officials. The sources did not specify, however, when or why Huang traveled to the Chinese capital, or what she is doing there at present.
Alice Huang previously ran Singapore-based Megaspeed, which purchases servers with Nvidia processors and leases them to customers, including Chinese clients. According to Bloomberg, Alibaba was among its customers. The New York Times reported that in less than two years, Megaspeed acquired at least $4.8 billion worth of Nvidia-based equipment.
Sources: bloomberg.com, cbsnews.com, apnews.com