Nvidia’s Board Faced a Leadership Crisis as Allegations Against Huang Mounted
Nvidia’s Board Faced a Leadership Crisis as Allegations Against Huang Mounted
Nvidia’s board met Wednesday to discuss CEO Jensen Huang’s future after reports of an affair with an executive who reports to him, as well as a separate relationship with a woman U.S. intelligence identified as a Chinese spy. The board had announced no decision, and Nvidia did not respond to requests for comment, according to people familiar with the meeting.
The stakes are unusually high: Huang founded Nvidia in 1993, holds a 3.56 percent stake and has no clear successor. One technology analyst described his leadership as “very much the command and control,” adding that “nobody can replace Jensen” in the same way.
A later report said the board was preparing to dismiss Huang and could decide before the company’s investigation was complete. It identified the subordinate as Nvidia vice president Kimberly Powell, but said the newspaper reporting the allegation had not seen the video cited by unnamed sources. Nvidia had retained a law firm to investigate the separate relationship, and its stock fell more than 7 percent in after-hours trading Wednesday.
The prospect of a rapid exit drew resistance online. David Sacks reposted an argument that Huang “shouldn’t” resign and the board “shouldn’t fire him,” urging it to “ride it out.” Another post he shared said shareholders—not “the press or online mobs”—should decide Huang’s fate after the investigation.
As posts began talking about Huang’s reinstatement, Elon Musk amplified claims of growing investor and founder support. He also warned that Nvidia could lose talent and critical supplier relationships without Huang, saying some supply deals were “a handshake with Jensen, not a written contract.” The competing arguments leave the board weighing alleged misconduct against the risks of disrupting a company whose fortunes are closely bound to its founder.
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