Nvidia Corp.’s board of directors is preparing to oust CEO and co-founder Jensen Huang following his admission of multiple extramarital affairs. The board is reportedly working with an outside firm to identify potential replacements and is scheduled to meet as soon as Wednesday evening to determine Huang's fate.
The controversy centers on Huang's affair with Alice Huang, a former tech executive and Chinese businesswoman whom U.S. intelligence agencies and the FBI believe was a Chinese spy. Allegations have emerged that this relationship aided at least $7.5 billion in Nvidia chip shipments to China. The company is currently investigating whether Huang was targeted by a foreign intelligence operation.
In addition to the affair with the suspected spy, Huang has been accused of having a relationship with Kimberly Powell, Nvidia's vice president of health care, an executive who reported to him. These revelations have drawn the attention of Congress, with House Republicans calling for a closed-door briefing and preparing to subpoena Huang to provide answers.
The news has caused significant volatility for the AI chipmaker. Nvidia shares sank sharply in after-hours trading, dropping more than 8 percent as investors reacted to the possibility of the company operating without its founder of 33 years at the helm.