Just two weeks ago, no one was even considering asking the question. Jensen Huang, 63, cofounder of Nvidia in 1993, was one of the most powerful bosses on the planet and a frequent interlocutor of Donald Trump.
On Wednesday, November 11, his board met to decide his fate. No decision had been announced as these reports were published.
First cause: the Alice Huang affair
It all started with a revelation by the New York Times (NYT) last month.
U.S. intelligence officials reportedly discovered that Nvidia’s chief maintained a close relationship with a Chinese national who purchases chips. Washington believes she was collecting intelligence for Beijing.
Alice Huang, also known as Huang Le, was the head of Megaspeed, a Singapore-based data-center company that became one of Nvidia’s biggest clients in Southeast Asia. According to the NYT, she purchased more than $4.8 billion worth of Nvidia chips since June 2024.
The matter is sensitive, because the United States forbids Chinese companies from acquiring the most advanced chips. Reuters notes that U.S. agencies were investigating Alice Huang’s role in routing Nvidia chips to Chinese firms. Beijing denies espionage allegations, and Alice Huang did not respond to requests for comment.
Last Sunday, Jensen Huang acknowledged in a message to employees that he had been unfaithful to his wife, Lori, who has been married to him for 41 years. He said he would take “full responsibility” for his actions, without providing details. The board promptly opened an internal investigation and hired the firm Wachtell, Lipton, Rosen & Katz, according to the NYT.
Second cause: the liaison with a subordinate
On Wednesday, the New York Times added a second revelation: an extramarital relationship with Kimberly Powell, Nvidia’s Vice President of Health, who reports directly to him.
The outlet cites five people who worked at the company. It also notes that Jensen Huang and Kimberly Powell, 48, were filmed displaying affection in a San Jose hotel during a Nvidia conference in March. When contacted by phone, Jensen Huang reportedly said no one should speak to him directly, then hung up.
This second episode changes the nature of the case.
Nvidia’s code of conduct urges employees to avoid conflicts of interest, including personal relationships, the NYT notes, and many companies prohibit relationships between a manager and a subordinate.
The board, which had expressed its confidence in Jensen Huang on November 8, was taken by surprise. According to the NYT, it began deliberating the leader’s future as soon as the newspaper approached Nvidia for comment.
Third cause: governance built around a single man
Then there is the question of the structure.
The bylaws allow the chief to be ousted “with or without cause” by a majority of the directors, Reuters reports. The board comprises eleven members, all deemed independent except for Jensen Huang. The NYT notes, however, that these directors are also long-time investors and partners, with a combined 161 years on the board, and often close to the boss.
The FT notes another point: the board has no chairman, which, the newspaper says, underscores the founder’s singular role.
The annual reports and governance documents of Nvidia did not mention a “succession plan,” even in an emergency. Jensen Huang holds about 3.6% of the capital, oversees every facet of the business, and dozens of people report directly to him.
The weight of politics and markets
Alongside these internal causes, external pressure is mounting.
Donald Trump, close to Jensen Huang, says he did not know that the woman was a suspected spy. The FT notes that the president mentioned a FBI probe while voicing his support. But lawmakers from both sides are calling for investigations in Congress.
Democratic senators Elizabeth Warren and Chris Coons have asked three senior administration officials to preserve all documents related to AI chip exports to China.
The markets have already reacted. According to the NYT, the stock has fallen by about a third from its October peak, wiping out more than $1.5 trillion in market capitalization.
The board has several options, according to the FT: temporarily sideline Jensen Huang for the duration of the investigation, or push for his immediate departure.
Bloomberg reports that an external firm is already helping to identify replacements, while one analyst cites CFO Colette Kress as a natural interim successor.
