Nvidia board weighs ouster of CEO Jensen Huang amid spy scandal
Summary
Nvidia’s board met to consider whether to remove CEO Jensen Huang after reports of two extramarital affairs, including one involving Alice Huang, who is alleged to be a Chinese spy. The reports prompted a market sell-off and scrutiny of Nvidia’s leadership, while the company’s board had expressed confidence in Huang earlier in the week.Key Facts
- A source familiar with the matter told Reuters that Nvidia’s board met late Wednesday to consider removing Huang.
- Nvidia’s board had expressed confidence in Huang and his leadership team on Sunday.
- Nvidia’s bylaws allow a majority of its 11 directors to remove Huang, with or without cause.
- Nvidia shares fell more than 8 percent in extended trading after the Wall Street Journal reported the company was preparing to fire Huang.
- The article reports that Nvidia’s board launched an internal investigation and hired outside counsel after scrutiny of Huang’s relationship with Alice Huang.
- U.S. intelligence was reportedly investigating whether Alice Huang facilitated shipments of Nvidia chips to Chinese firms.
- Huang, 63, owns about 3.6 percent of Nvidia and has no obvious successor; Bloomberg reported that the board was working with an outside firm to identify potential replacements.
- Nvidia did not immediately respond to a request for comment about the board meeting.
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