Nvidia’s board is reportedly preparing to remove founder and CEO Jensen Huang, over a pair of extramarital relationships, one of them involving a woman United States’ officials believe worked for Chinese intelligence.
Directors are weighing Huang’s future while Nvidia shares fell more than 8% in after-hours trading. The turmoil began Sunday, when Huang, 63, wrote to employees: “I was unfaithful to my wife.”
He added that his actions had hurt her and their children, and that there was “no excuse.” He did not name the other person but said he would cooperate with the board’s investigation.
The same day, the board announced an independent inquiry into reports that Huang has been the target of a foreign intelligence effort.
It said it had no reason to believe national security or company secrets were compromised and voiced confidence in his leadership. A company spokesman said Huang will remain CEO.
That relationship reportedly involved Alice Huang, who is no relation to the CEO. She is a former executive at Megaspeed, a Singapore-based company that is a major Nvidia customer.
US officials have concluded she worked for Chinese intelligence, according to earlier New York Times and Wall Street Journal reporting. China has denied the allegation.
Singapore’s Ministry of Home Affairs disputed reports that its government had investigated Alice Huang or raised concerns about her relationship with Huang. Megaspeed has faced scrutiny over large purchases of advanced Nvidia chips and questions about whether some were diverted to China.
On Wednesday, the New York Times reported a second relationship, with Kimberly Powell, Nvidia’s vice president of healthcare, who reports directly to Huang. Neither Huang nor Nvidia has confirmed it. President Trump has said he spoke with Huang, who told him he had no idea the woman was a spy.
Under Nvidia’s bylaws, a majority of independent directors can remove an officer with or without cause. But the company has no formal succession plan, and Huang has about 60 direct reports. He has led Nvidia since its founding and built it into one of the world’s most valuable companies.
