Nvidia board seeks Jensen Huang's successor, weighs interim chief amid affair controversy

Nvidia's board of directors is working with an external firm to identify potential successors to chief executive Jensen Huang as it weighs his future at the technology giant following reports of multiple extramarital affairs, including one involving a woman suspected by US intelligence agencies of spying for China.

The board is considering appointing an interim chief executive while it searches for a permanent replacement, a person familiar with the matter told Bloomberg, requesting anonymity because the discussions are not public.

Directors were expected to meet on Wednesday (local time) to decide Huang's future at the company. The Wall Street Journal had earlier reported that the board was preparing to remove the 63-year-old executive, citing people familiar with the matter. Reuters also reported that the board was meeting to consider whether to oust him.

Nvidia did not immediately respond to requests for comment from the media outlets. The White House, meanwhile, has indicated that it will not intervene in the board's decision, according to The Washington Post.

The developments follow Huang's admission in an email to Nvidia employees on Sunday that he had been unfaithful to his wife. The message came after the company announced an internal investigation into reports that he had been targeted by a foreign intelligence operation involving an alleged Chinese spy.

Second alleged affair adds to pressure on Nvidia CEO

The controversy escalated further on Wednesday after The New York Times reported that Huang had also been involved in an extramarital relationship with Kimberly Powell, Nvidia's vice-president of healthcare, who reportedly reported directly to him.

The newspaper identified Powell after speaking to five people who had worked at the company. It also reported that Huang and Powell had been seen displaying affection towards each other at a hotel in San Jose, California, during an Nvidia conference in March.

The latest allegations have compounded the scrutiny surrounding Huang's relationship with Alice Huang, an executive at Singapore-based technology firm Megaspeed International, which is among Nvidia's major customers in South-east Asia.

Jensen Huang acknowledged having an affair with Alice Huang in his message to employees. US intelligence officials have reportedly suspected her of operating on behalf of the Chinese government and facilitating shipments of Nvidia chips to Chinese companies.

Nvidia's board announced on November 8 that it would launch an independent investigation into reports that its chief executive had been targeted by a foreign intelligence operation. An independent committee, assisted by external legal counsel, will oversee the inquiry.

In its statement, the board said it had no reason to believe that national security or Nvidia's trade secrets had been compromised, but that the investigation would examine all available information. It also expressed confidence in Huang and his leadership team.

Succession crisis poses challenge for Nvidia

The reported search for potential replacements has exposed Nvidia's lack of a clear succession plan and the extent to which the company depends on its founder and longtime chief executive.

Huang co-founded Nvidia in 1993 and has been its only chief executive since its inception. He has played a central role in transforming the company into the world's leading supplier of artificial intelligence chips, with its market value rising dramatically during the AI boom.

He has also been instrumental in expanding Nvidia's influence across the artificial intelligence supply chain, using the company's financial resources to invest in startups and businesses operating in the sector. His reputation as a dealmaker and his close involvement in major business decisions have made him particularly influential within the organisation.

The board now faces a difficult choice. Removing Huang could create a significant leadership vacuum at a company whose share price has risen more than 700,000% during his tenure and which enjoys strong backing from shareholders and customers.

However, retaining him could expose Nvidia to further scrutiny from lawmakers, investors, customers and employees over his personal relationships, the possibility of foreign intelligence targeting and potential risks to the company's trade secrets.

Nvidia is also at the centre of the technological rivalry between the United States and China, making the controversy particularly sensitive. Any leadership change could have implications beyond the company, attracting attention from investors and the wider technology industry.

Nvidia shares lose billions in market value

The controversy has also weighed on Nvidia's stock, with its shares falling around 8% to 9% in extended trading on Wednesday following reports about the board's plans and the latest allegations against Huang.

The company has lost more than $300 billion in market value since news of his reported relationship with Alice Huang first emerged.

Investors are closely monitoring developments ahead of an official announcement from the board, particularly whether Huang will remain at the helm or whether the company will begin a leadership transition.

The possibility of his departure has also raised questions about how Nvidia would maintain its business strategy and position in the global AI industry without the executive who has led its rise for more than three decades.