Nvidia Board Considers Removing Founder-CEO Jensen Huang Amid Dual Affair Scandal
Nvidia’s board is weighing a vote to oust Jensen Huang after revelations of two extramarital affairs, sending the AI-chip leader’s stock tumbling.
On Thursday, Nvidia’s board of directors is set to meet to decide whether to remove co-founder and chief executive Jensen Huang following the emergence of a second alleged extramarital relationship with a company executive. The move comes days after Huang publicly acknowledged an affair with a woman identified by U.S. intelligence as a Chinese intelligence asset.
- Two separate affairs – one with a suspected Chinese spy and another with VP of Healthcare Kimberly Powell – have triggered an emergency board meeting.
- The board hired law firm Wachtell, Lipton, Rosen & Katz to investigate potential security breaches and policy violations.
- Nvidia shares slipped 8%-9% in after-hours trading, extending a week-long decline.
What sparked the board’s emergency action
According to the Wall Street Journal, the directors could convene as early as November 11 to discuss Huang’s future, with “all options on the table,” including dismissal. The New York Times reported that five employees witnessed Huang and Kimberly Powell, Nvidia’s vice president of healthcare, being affectionate at a San Jose hotel during the company’s GTC conference in March. Both are married, and the relationship allegedly violates Nvidia’s code of conduct, which flags personal relationships as potential conflicts of interest.
Background on the first affair and security concerns
In early November, Huang sent an internal email admitting an affair with Alice Huang, a former CEO of Singapore-based data-center provider Megaspeed. U.S. intelligence agencies suspect Alice Huang of working for China’s Ministry of State Security, though no concrete evidence of data leakage has emerged. Nvidia’s board responded by retaining Wachtell, Lipton, Rosen & Katz to determine whether any proprietary information was compromised.
Potential succession challenges
Nvidia has never changed CEOs in its 33-year history. If Huang is removed, the company would need an interim leader while searching for a permanent replacement. CFO Colette Kress is mentioned as a possible interim chief executive, but she has no track record of leading Nvidia’s core data-center and AI businesses. Co-founder Chris Malachowsky, a longtime board member, could advise the transition, yet he has not held an executive role for over a decade, making his candidacy unlikely.
Impact on investors and the AI market
The stock reaction has been swift. Nvidia’s shares fell more than 9% in late trading on Wednesday, according to SiliconANGLE, and about 8% in after-hours trading per Tom’s Hardware. Over the past five days, the stock is down roughly 11%, extending a six-week losing streak. The market’s sensitivity reflects Nvidia’s dominant position—controlling roughly 90% of the global AI-chip market—and the uncertainty a leadership change could introduce to customers, partners, and developers relying on its platforms.
What comes next for Nvidia
Beyond the board’s immediate decision, Nvidia must address several longer-term issues. First, the outcome of the independent investigation will determine whether any classified or proprietary information was exposed. Second, the company will likely revisit its internal policies on executive relationships to prevent future governance risks. Finally, investors will watch closely for any guidance on succession planning, as the lack of a clear heir could affect Nvidia’s ability to sustain its rapid AI-driven growth.
