Nvidia board reportedly preparing to oust CEO Jensen Huang amid affairs and spy allegations

Nvidia's board of directors is preparing to oust CEO Jensen Huang, according to two sources familiar with the matter cited by CBS News. The Wall Street Journal was first to report on the board's moves, and the board could meet as soon as Wednesday to decide his future.

The developments follow Huang's admission over the weekend that he was unfaithful to his wife. In a message to Nvidia employees, Huang wrote: "I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did." He did not name the woman involved.

The allegations

CBS News reports that one affair involved Alice Huang, who is not related to Jensen Huang. U.S. intelligence agencies have believed for months that Alice Huang was recruited by China's Ministry of State Security, according to The New York Times. Alice Huang previously led a Singapore-based firm called Megaspeed International that bought billions of dollars worth of Nvidia chips and hardware.

The New York Times also reported that Huang had a relationship with a direct report, an Nvidia employee. CBS News notes that Huang also had an affair with an Nvidia employee, a person familiar with the matter told the Journal.

Investigations and official responses

Nvidia's board said Sunday it had launched an independent investigation into allegations that the CEO "has been the target of a foreign intelligence effort." The board said it had no reason to believe the company's secrets or national security were compromised. Nvidia spokesperson John Rizzo said: "We trust that if we were the target of a genuine threat, the U.S. government would have notified us."

Two law enforcement sources told CBS News the Justice Department is also investigating Megaspeed over potential violations of U.S. export restrictions on advanced AI chips. Megaspeed has denied any involvement in illegal chip transfers.

China has denied all allegations. Ministry of Foreign Affairs spokesperson Guo Jiakun told reporters on Monday that the "so-called Chinese spy narrative is entirely baseless and constitutes slander and smear."

Market reaction and political context

Nvidia's share price slid more than 8% in after-hours trading Wednesday after the Journal's report, extending a multi-day sell-off. The Straits Times reported shares fell 9% as at 5.30pm in New York. Other AI-linked stocks followed, with CoreWeave shedding more than 5%, Intel and Dell Technologies each falling 3%, and Super Micro Computer declining more than 4%.

Nvidia designs semiconductors that fuel many of the world's leading AI firms, making its technology highly sensitive and subject to export controls limiting sales to China. The company is scheduled to report quarterly results on November 17.

President Trump called Jensen Huang a "very high-quality person," saying during a White House briefing that "the FBI is looking into it in terms of something else, and I think that he'll be in good shape." The president said he spoke to Jensen Huang to see how he was doing, and the executive "said he had absolutely no idea that the person in question was a spy."

Why it matters

• Nvidia's board is reportedly preparing to remove CEO Jensen Huang following allegations of extramarital affairs and potential foreign intelligence targeting.
• The board launched an independent investigation, and the Justice Department is investigating Megaspeed over potential export restriction violations.
• Nvidia shares fell more than 8% in after-hours trading, with other AI-linked stocks also declining.
• The company is scheduled to report quarterly results on November 17 amid leadership uncertainty.

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Sources

• cbsnews.com: Nvidia's board preparing to oust CEO Jensen Huang, sources say - CBS News
• finance.yahoo.com: Nvidia Pushing Out Jensen Huang After Affairs: WSJ
• stuff.co.nz: Nvidia board reportedly preparing to oust CEO Jensen Huang amid affair and spy claims | Stuff
• tradingview.com: Nvidia’s Board Is Reportedly Planning To Oust Jensen Huang Over Chinese Spy, Employee Misconduct Investigation — TradingView News
• straitstimes.com: Nvidia shares tumble over Jensen Huang governance fears | The Straits Times

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.