❯ Nvidia board reportedly prepares to remove Jensen Huang as a second alleged affair intensifies succession discussions

Directors debate his futureNvidia’s leadership crisis escalated on November 11 in the United States. The Wall Street Journal reported that directors were preparing to remove founder and CEO Jensen Huang; Reuters subsequently learned independently that the board was meeting that day to decide whether to do so. No formal removal or successor appointment had been announced by the morning of November 12 in Beijing, leaving the outcome unresolved.

A second relationship is reportedEarlier that day, The New York Times cited five people who had worked at Nvidia as saying Huang had an extramarital relationship with healthcare vice president Kimberly Powell, a direct report, and that it had been discussed inside the company. Reuters said it could not immediately verify the account, while Nvidia and Powell did not immediately respond to requests for comment. The reported involvement of a subordinate adds a direct question about workplace power and corporate governance to the controversy.

An investigation follows earlier supportThe controversy previously centered on Huang’s relationship with businesswoman Alice Huang. In a November 8 staff memo, he acknowledged infidelity and took responsibility; that day, Nvidia’s board announced an investigation overseen by independent directors with outside independent counsel, with Huang cooperating. Directors then expressed confidence in him and his leadership team and said they had no reason to believe company secrets had been compromised, while committing to examine available information.

An outside search takes shapeOfficeChai’s account of Bloomberg’s reporting says directors have been working with an outside firm to identify possible successors and are weighing an interim CEO during the permanent search. The report cites an unnamed person familiar with the situation; the firm, candidates and potential interim arrangements have not been disclosed. An interim appointment could allow directors to address immediate leadership questions before completing a longer search.

A founder-centered organizationHuang has led Nvidia since co-founding it in 1993, overseeing its development from a graphics-chip maker into a central AI computing supplier. Reuters notes that he owns about 3.6% of its shares, has dozens of direct reports and has no obvious successor. Replacing him would therefore entail handing over technical decisions, management coordination and customer relationships, a transition that extends well beyond naming a new executive.

Markets price in uncertaintyNvidia shares fell about 8% in after-hours trading on November 11 following the removal reports. Investors and analysts interviewed by Reuters did not necessarily expect immediate damage to chip demand, but the developments raised questions about reliance on the founder and effects on the company’s partnerships and investment network. The board’s decision, the investigation’s findings and any transition leadership or division of responsibilities remain unresolved.

▮ SIGNALHuang’s concentration of technical and commercial authority makes the board’s decision a test of both Nvidia’s succession arrangements and its ability to operate independently of its founder.