Nvidia board weighs possible resignation of Jensen Huang amid investigation
The board of directors of American chipmaker Nvidia is discussing a possible change of CEO Jensen Huang against the backdrop of a corporate investigation. The company has come under pressure following reports about the leader’s personal ties, which raised questions regarding corporate ethics and U.S. national security.
As reported by The New York Times citing two informed sources, the board of directors held a meeting on Wednesday, November 11, to discuss Huang’s continued tenure. As of the morning of November 12, no official decision on his dismissal has been announced.
The reason for the escalation of the situation were new reports about Huang’s extramarital affair with Nvidia Vice President Kimberly Powell, who is directly subordinate to him. According to the publication, this information raised additional questions about compliance with the company’s internal rules, which provide for the prevention of conflicts of interest.
Earlier, Huang admitted to marital infidelity after reports of his affair with Alis Huang, a manager associated with the Singapore-based company Megaspeed - a major buyer of Nvidia chips. According to U.S. media, U.S. intelligence agencies suspect the woman of collaborating with Chinese intelligence. China denies the allegations.
On November 8, Nvidia officially announced an independent investigation into possible attempts by foreign intelligence to influence its CEO. The company stressed that it has no reason to believe that its trade secrets or U.S. national security have been compromised.
To conduct the inquiry, independent directors engaged the law firm Wachtell, Lipton, Rosen & Katz and former federal prosecutor June Kim. Huang himself agreed to cooperate with investigators. Despite the board initially publicly expressing support for him, after new reports emerged it moved to discuss possible personnel decisions.
Uncertainty surrounding Nvidia’s leadership has already affected financial markets. After reports of Huang’s possible resignation, the company’s shares lost about 8% in after-hours trading on November 11.
A potential leadership change could pose a serious challenge for Nvidia. Huang has led the company since its founding in 1993 and played a key role in transforming the graphics processor maker into one of the main suppliers of computing power for artificial intelligence.
At the same time, Nvidia does not have a publicly designated successor to the CEO. A significant part of the company’s managerial decisions and strategic ties are concentrated around Huang, so his possible resignation creates additional risks for investors and partners.
Based on materials from: The New York Times, Nvidia, The Washington Post
