AI & Tech · National
Nvidia's board is reportedly preparing to remove CEO Jensen Huang after reports of a second alleged affair
The Wall Street Journal reported that Nvidia's board could meet as soon as Wednesday to decide Jensen Huang's future, days after he admitted an affair with a woman U.S. intelligence alleges is a Chinese spy.
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What happened
Nvidia's board of directors is preparing to dismiss co-founder and CEO Jensen Huang, according to a Wall Street Journal report cited by The Verge and TechCrunch. Sources told the Journal the board would meet as soon as Wednesday to decide Huang's future at the company. TechCrunch noted that Huang has led Nvidia for 33 years.
The report followed two separate allegations of extramarital affairs in less than a week. Nvidia did not immediately respond to a request for comment from The Verge. The source articles do not say what the board decided.
TechCrunch described Nvidia as one of the most valuable companies in the world, noting that it designs the chips that power the AI boom. For more coverage of the companies behind artificial intelligence, see our AI and tech section.
The allegations behind the board's review
An admission on Sunday
On Sunday, Huang admitted to an extramarital affair with a woman purported by U.S. intelligence to be a Chinese spy, TechCrunch reported. The Verge reported that Nvidia and Huang confirmed the relationship and that an investigation followed over the weekend. Neither source says the woman has been charged with any crime.
A second report from The New York Times
On Wednesday evening, The New York Times reported that Huang also had an affair with an executive who reports to him, identified by the Times as Nvidia's vice president of health care. Two unnamed sources told the Times that the two, who are both married to other people, were allegedly captured together at a hotel in San Jose during Nvidia's GTC developer conference in March. The Times said it has not seen the video.
How investors reacted
Nvidia's stock fell in after-hours trading Wednesday as the reports circulated. The Verge put the drop at more than 7 percent, while TechCrunch reported it at about 8%. TechCrunch also reported that the stock is down about 11% over the past five days.
Succession and the investigation
No clear successor
Huang has said he has about 60 direct reports and delegates very little, according to TechCrunch. The outlet also reported that the company has not had an obvious successor or a succession plan. Citing Bloomberg, TechCrunch said Nvidia is working with an outside firm to identify candidates who could potentially replace Huang as CEO.
Lawyers and crisis advisers
After the first affair became public, Nvidia said it had retained former U.S. attorney Joon H. Kim and his firm, Wachtell, Lipton, Rosen & Katz, to handle the investigation, The Verge reported. The Verge wrote that the reported board meeting suggests the company will not wait for those results before acting.
Separately, Wired reported that Huang hired the crisis communications firm Heller last year. According to Wired, the firm's founder has advised powerful men facing public scrutiny, including former congressman Anthony Weiner and writer Jeffrey Toobin. Heller did not immediately respond to a request for comment from The Verge.
What to watch next
- The outcome of the Nvidia board meeting that the Wall Street Journal reported could take place as soon as Wednesday to decide Huang's future.
- Findings from the investigation led by former U.S. attorney Joon H. Kim and Wachtell, Lipton, Rosen & Katz.
- Whether the outside firm Nvidia is working with, according to Bloomberg, produces candidates to replace Huang as CEO.
- A public response from Nvidia, which had not commented to The Verge at the time of its report.
