Nvidia’s board of directors convened for urgent discussions on Wednesday night to determine the future of CEO Jensen Huang, according to people familiar with the matter. The meeting follows a series of damaging revelations regarding Huang’s personal relationships that have triggered a federal investigation and caused significant volatility in the company’s stock price.
The board is now weighing whether to remove Huang from his position or ask him to step aside while an internal inquiry proceeds. This marks a dramatic shift for the semiconductor giant, which has historically operated with minimal checks on its founder and chief executive.
Board Urgent Talks and Succession Planning
The urgency of the situation stems from two separate romantic entanglements involving the CEO. On Sunday, Huang admitted to having an affair with Kimberly Powell, the company’s vice president of healthcare. Powell has been with Nvidia for more than 18 years and is one of its most visible public figures.
This disclosure came just days after reports emerged that Huang had an affair with Alice Huang, an executive at Megaspeed, a Singapore-based client of Nvidia. US intelligence officials believe Alice Huang was recruited by China’s Ministry of State Security, the country’s primary foreign intelligence agency.
In response to the first scandal, the board hired a former federal prosecutor to investigate the affair with the suspected spy. Despite the severity of the allegations, directors have so far publicly backed Jensen Huang to remain in his role. However, the addition of the second relationship has intensified pressure on the leadership team.
Corporate governance documents for Nvidia have traditionally lacked specific references to succession planning. The company’s annual reports do not outline procedures for replacing the CEO, even in an emergency. The current crisis is forcing the board to address this gap in real time.
Market Reaction and Political Fallout
Investors reacted swiftly to the news. Nvidia shares fell 8.6 percent in after-hours trading after The New York Times reported the relationship with Kimberly Powell. The Wall Street Journal added to the uncertainty by reporting that the board could move to oust Huang immediately.
The broader technology sector also felt the impact. Futures tracking the Nasdaq 100 dropped approximately 1 percent in evening trading. As the world’s most valuable company for much of the past year, Nvidia’s stability is closely tied to the global artificial intelligence boom. Its chips are essential for training models used by major tech firms, and its equity investments have made it a central player in AI financing.
Political reactions have been mixed. President Donald Trump stated on Monday that the FBI is investigating the situation but expressed support for Huang, describing him as a high-quality person. The two have developed a close rapport since Trump returned to the White House, with Huang serving as an influential voice in US artificial intelligence policy.
Despite the president’s support, bipartisan criticism has grown. Senior Republicans and Democrats have called for congressional investigations into the CEO, particularly regarding his advocacy for allowing US companies to sell more advanced AI chips to China. Meanwhile, Elon Musk, chief executive of Tesla, posted on X that it would be an honor to hire Jensen Huang if he leaves Nvidia.
Nvidia did not immediately respond to requests for comment regarding the board’s deliberations. Kimberly Powell could not be reached for comment. The board’s final decision will likely have far-reaching consequences for the company’s leadership structure and the broader AI industry.
Source: Ars Technica
