Nvidia CEO Jensen Huang Faces Ouster Amid Reports of Affairs and Security Concerns

Nvidia founder and CEO Jensen Huang is reportedly facing potential ouster from the company he built, not due to business failure, but over revelations of two extramarital affairs. The company's board is preparing to remove him, possibly as early as Thursday, according to sources familiar with the matter cited by The Wall Street Journal. One of the affairs was with Alice Huang, a Chinese businesswoman suspected of espionage for China.

The board may convene today to decide Huang's fate after 33 years at the helm. While no official announcement has been made, CBS reported that the Trump administration is aware of the board's preparations. Bloomberg also reported that the board has been in contact with an external firm to find potential CEO replacements, considering both interim and permanent appointments.

The dramatic developments stem from a New York Times investigation revealing Huang's alleged relationship with Kimberly Powell, Nvidia's Vice President for Health, who reported to him. Five employees described the relationship, which had become office gossip. The report also detailed an incident in March at Nvidia's annual developer conference in San Jose, California, where Huang and Powell were allegedly seen displaying affection in a hotel. A security guard reportedly intervened when someone attempted to film the interaction, offering the individual a non-disclosure agreement.

Powell, who joined Nvidia in 2008 and rose to VP in 2017, oversees the company's work in areas like medical imaging and drug discovery. Her alleged relationship raises questions about Nvidia's ethics policy, which requires employees to avoid conflicts of interest, including those arising from personal relationships.

Of particular concern to U.S. authorities is the affair with Alice Huang, a former executive at Singapore-based Megaspeed, a major Nvidia customer. U.S. intelligence agencies reportedly believe Alice Huang was recruited by China's Ministry of State Security to gather information on Nvidia and influence U.S. chip export policies. Her relationship with Jensen Huang allegedly facilitated the transfer of at least $7.5 billion worth of chips to Chinese companies through a network of firms she established.

The affair has reached the White House, with reports indicating Secretary of State Marco Rubio was involved in a classified intelligence memo about Huang's connection to Alice Huang and had warned President Trump. Trump, who has maintained close ties with Huang, has repeatedly stated his belief that Huang was unaware of Alice Huang's alleged espionage activities. The FBI is also investigating, and congressional committee chairs have requested a closed-door briefing from Huang.

In an unusual letter to Nvidia employees on Sunday, Huang admitted to betraying his wife and apologized to his family, stating, "There is no excuse for what I have done." He pledged to cooperate with the investigation and remain committed to leading the company. Huang has been married to his wife, Lori, since 1985, and they have two children who now work at Nvidia.

The scandal has also impacted Nvidia's stock, wiping out approximately $430 billion in market value over two trading days, with the stock dropping about 8% in late trading following the latest reports. Nvidia employs about 6,000 people in Israel and plans to build a large development campus near Kiryat Tivon.