Nvidia has lost about $600bn in market value since the inquiry began
Nvidia’s board is meeting to decide whether to oust Jensen Huang as chief executive of the world’s dominant supplier of AI processors, a source familiar with the matter told Reuters, as the company confronts reports of two extramarital affairs involving its longtime leader.
The reports mark a sharp escalation in a controversy that began with revelations about Huang’s relationship with Alice Huang, a woman US intelligence has said was involved in facilitating shipments of Nvidia chips to Chinese firms.
Earlier in the day, the New York Times reported that Huang had also had an extramarital affair with a company executive who reported to him.
In a memo to employees on Sunday, Huang acknowledged being unfaithful to his wife and took “full responsibility,” but gave no details about the relationship.
Nvidia’s shares slid about 8% in after-hours trading after the Wall Street Journal first reported that the company was preparing to oust Huang.
Including Wednesday’s after-hours selloff, Nvidia has lost about $600bn in stock market value this week since the board announced its investigation into Huang’s relationship with a Chinese businesswoman.
Huang, 63, has no obvious successor and owns about 3.6% of Nvidia’s stock. He also has dozens of direct reports, underscoring the tight control he maintains over the company.
The board deliberations are attributed to a single unnamed source who spoke to Reuters; the account of a second affair rests on the New York Times’ reporting; and Huang’s infidelity acknowledgment comes from his own Sunday memo.