NVIDIA’s powerful CEO, Jensen Huang, may be on the verge of being fired. Following revelations about two extramarital affairs—one of which involved a suspected Chinese spy—the board is reportedly preparing to dismiss him. Meanwhile, hundreds of billions of dollars have been wiped off the company’s market capitalization.
According to Wall Street Journal Nvidia's board is preparing to oust the 63-year-old CEO Jensen Huang. The board met on Wednesday to discuss his future. His departure would mark a historic shift in power within the AI industry, where Huang has been a central figure since he founded Nvidia in 1993.
Affair with a Suspected Spy
The background to this is the revelation that Huang had been in a relationship with Alice Huang, a Chinese businesswoman whom U.S. intelligence agencies have identified as a Chinese spy. The woman has held a senior position at a major Nvidia customer that has purchased AI chips worth over $4.8 billion since June 2024. China denies the espionage allegations.
On Wednesday, it was revealed that New York Times yet another alleged affair, this time with the Nvidia CEO Kimberly Powell. The two were reportedly seen showing affection at a hotel in California. According to the newspaper’s sources, Huang’s security team tried to get a witness who had filmed the incident to sign a confidentiality agreement.
Hundreds of billions gone
The scandals have had major financial consequences. Nvidia’s stock fell about 8 percent in after-hours trading on Wednesday. According to Dagens industri, the company’s market capitalization has declined by $713 billion since Friday.
NVIDIA's board of directors has already launched an investigation into the espionage allegations. Now, the question of whether Huang violated the company's code of ethics regarding personal relationships and conflicts of interest has also come to the fore. No final decision regarding his future has yet been announced.
