Nvidia’s board of directors convened late Wednesday to deliberate the potential removal of co-founder and CEO Jensen Huang. The emergency meeting marks a sharp reversal from the board’s initial vote of confidence just days prior, as the $4-trillion AI chip giant grapples with mounting fallout from Huang’s reported extramarital affairs and an escalating geopolitical espionage probe.
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The leadership crisis ignited following revelations of Huang’s relationship with Alice Huang, a businesswoman currently under US intelligence investigation as an alleged Chinese spy suspected of diverting restricted Nvidia chips to Chinese firms. On Wednesday, The New York Times reported a second extramarital affair with Kimberly Powell, Nvidia’s vice president of healthcare.
While Huang previously sent an internal memo taking “full responsibility” for being unfaithful to his wife, he declined to comment on the latest reports. The compounding scandals have deeply unsettled investors, erasing roughly $600 billion in market value since the board announced its internal investigation.
The scandal has drawn significant political attention in Washington. US President Donald Trump publicly backed Huang, claiming the CEO was unaware of Alice Huang’s alleged espionage ties. Nevertheless, Huang faces a potential congressional subpoena for a closed-door briefing. Concurrently, US Commerce Secretary Howard Lutnick has reportedly stalled a planned crackdown on companies suspected of illicitly routing Nvidia hardware to China.
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At 63, Huang controls 3.6% of Nvidia and maintains tight operational control with dozens of direct reports, leaving no clear succession plan. While CFO Colette Kress is viewed by analysts as a natural interim CEO, betting markets favour Ian Buck, head of Nvidia’s data centre business, to take the helm.
The board is reportedly working with outside firms to identify viable candidates as they brace for a critical quarterly earnings presentation scheduled for November 17.
