Nvidia’s board is considering replacing chief executive Jensen Huang following reports of two extramarital relationships, including one involving a woman suspected of working for Chinese intelligence, as the $4 trillion chipmaker confronts a leadership crisis with no obvious successor.
The board has engaged an outside firm to identify potential candidates and is considering appointing an interim chief executive while conducting a search for a permanent replacement, according to a person familiar with the discussions. Directors were due to meet on Wednesday to consider Huang’s future. The Wall Street Journal reported that the board was preparing to remove him, citing people familiar with the matter. Nvidia did not immediately respond to requests for comment.
The controversy began on Sunday, when Huang, 63, acknowledged in a memo to employees that he had been unfaithful to his wife, taking “full responsibility” without providing details. The board subsequently began investigating whether he had been targeted by a foreign intelligence operation.
Huang admitted to having a relationship with Alice Huang, a data centre executive at Megaspeed International, a Singapore-based company that is one of Nvidia’s largest customers in South-east Asia. The New York Times reported that she was suspected of operating as an agent for the Chinese government. Megaspeed emerged from a Chinese gaming enterprise and has reportedly been under US investigation for months over potential chip smuggling. Both Megaspeed and Nvidia have denied wrongdoing, while Beijing has rejected allegations that it conducted espionage involving Jensen Huang.
The situation intensified on Wednesday after the New York Times reported that Huang had also had a relationship with Kimberly Powell, Nvidia’s vice-president of healthcare, citing people who had worked at the company. Powell did not immediately respond to a request for comment. The reported relationship has added another concern for directors because Powell was directly subordinate to Huang.
The board faces a difficult decision over whether to remove the company’s co-founder or retain a chief executive whose leadership has been central to Nvidia’s extraordinary growth. Huang is the only person to have led the company since its establishment more than three decades ago. He owns approximately 3.6 per cent of its shares and has dozens of direct reports, reflecting his close control over its operations.
His departure could create a significant leadership vacuum. Huang has played a central role in Nvidia’s commercial strategy, using its resources to invest in the artificial intelligence supply chain and numerous start-ups. He has also become one of the industry’s most prominent advocates, promoting the benefits of artificial intelligence while downplaying concerns about its potential risks.
The financial impact of the reports was immediate. Nvidia shares fell about 8 per cent in after-hours trading on Wednesday, adding to a decline that has erased approximately $600 billion in market value during the week. The allegations have also exposed the company’s lack of an established succession plan.
The controversy is attracting attention beyond Nvidia’s boardroom. Chinese artificial intelligence companies are reportedly seeking to secure access to Nvidia-powered computing capacity at data centres outside China, amid concerns that Washington could tighten restrictions on remote access to advanced processors. Three people familiar with the matter said the companies feared the controversy could strengthen support for the Remote Access Security Act, which would give the US Commerce Department authority to regulate cloud-based access to restricted technology. The House of Representatives passed the legislation in January by 369 votes to 22, and it is awaiting Senate action.
US President Donald Trump has expressed support for Huang, describing him as “an honorable guy” who had “done an amazing job for our country”. Trump has maintained close contact with the Nvidia chief, including meetings in Washington and China, and awarded him the National Medal of Science in October.
