Nvidia CEO Jensen Huang could lose his job after the revelation of two extramarital affairs, one with a woman suspected of working for Chinese intelligence. The board of directors of the American semiconductor giant is reportedly preparing to oust its 63-year-old co-founder and CEO. A board meeting was planned as early as Wednesday to decide his future, as the scandal caused Nvidia's stock to fall by more than 8% in after-hours trading on Wall Street.
A mistress suspected of spying for China
The first case involves Alice Huang, a businesswoman linked to Megaspeed International, a Singapore -based data center company and a major Nvidia client. US intelligence services suspect her of having ties to Chinese intelligence services and of facilitating the shipment of American processors to Chinese companies.
The relationship between Jensen Huang and Alice Huang has triggered a major crisis at Nvidia. US authorities are investigating whether confidential information was transmitted to Beijing and whether electronic chips subject to export restrictions were diverted to China.
This affair had already led Nvidia to open an independent investigation into the espionage allegations surrounding its CEO . However, no public evidence establishes that Jensen Huang knowingly transmitted trade secrets to Chinese authorities.
A second mistress within Nvidia itself
The revelations worsened on Wednesday with the discovery of a second extramarital affair. Jensen Huang is also alleged to have had a relationship with Kimberly Powell, Nvidia's vice president in charge of the healthcare sector. This executive works within the company and reports directly to the CEO.
This new affair puts Jensen Huang in a particularly delicate position. It raises questions about hierarchical relationships within the group and the rules of conduct imposed on executives. Kimberly Powell has not publicly responded to requests for comment regarding this alleged affair.
Jensen Huang admits his infidelity and apologizes.
On Sunday, Jensen Huang admitted to cheating on his wife Lori, to whom he has been married for about forty years. In a message to Nvidia employees, he admitted: "I have been unfaithful to my wife."
The executive also apologized for betraying the trust of his family and colleagues. The board of directors then announced the launch of an independent investigation to examine the circumstances of his relationship with Alice Huang and any potential consequences for the company's security.
At that time, the directors had still publicly expressed their confidence in Jensen Huang. The new revelations concerning Kimberly Powell appear to have profoundly changed the situation.
The board of directors is preparing his removal.
Nvidia's board of directors is reportedly preparing for Jensen Huang's departure. A meeting could be held as early as Wednesday to determine whether he should remain in his position. The company's bylaws allow directors to remove the CEO by a majority vote, with or without a specific reason.
Nvidia has eleven directors, ten of whom are considered independent. The decision could therefore be made without the agreement of Jensen Huang, who has led the company since its creation in 1993.
No official dismissal has been announced at this stage. Jensen Huang therefore remains CEO, although his continued leadership of the group now appears seriously threatened.
An 8% drop in the stock market and hundreds of billions gone
Financial markets reacted sharply to the announcement of this potential dismissal. Nvidia's stock fell by approximately 8% in after-hours trading on Wall Street . Taking into account the losses incurred since the announcement of the internal investigation, the group's market capitalization has reportedly declined by around $600 billion.
Jensen Huang's departure would be a major upheaval for the company he co-founded thirty-three years ago. Under his leadership, Nvidia transitioned from the market for video game graphics cards to that of processors essential for the development of artificial intelligence.
The billionaire owns approximately 3,6% of the group's capital. No obvious successor has been identified to take over the reins of this company, valued at several trillion dollars.
Donald Trump defended Jensen Huang
The case also takes on a political dimension. Jensen Huang maintains close ties with Donald Trump and has regularly advocated for a relaxation of US restrictions on processor exports to China.
The US president had publicly defended the Nvidia CEO after the initial revelations. But the espionage allegations surrounding Alice Huang have provoked strong reactions in Washington , where several members of Congress are demanding explanations about the Nvidia CEO's relationships and the potential national security implications.
A class-action lawsuit has also been filed against Nvidia and Jensen Huang by shareholders who accuse the company of concealing information that could affect its stock market value. Meanwhile, the board of directors has commissioned an independent investigation by internal audit specialists.
Jensen Huang, who built Nvidia into one of the world's most powerful companies, now faces the most serious threat to his career since the company's founding. The board of directors must now decide whether he can continue to lead Nvidia, while investigations into Alice Huang and potential transfers of American technology to China continue.
The internal link is direct, verified, and integrated into the body of the article. The two relationships remain presented according to their degree of confirmation, and no removal is announced as definitive.
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