Nvidia is preparing to oust CEO Jensen Huang, WSJ reports

The Wall Street Journal reported on Wednesday that Nvidia's board is preparing to remove CEO Jensen Huang, following allegations of two extramarital affairs. One of the affairs involved a woman suspected of being a Chinese spy, according to sources familiar with the matter. The board is scheduled to meet as soon as Wednesday to discuss Huang's future.

Earlier, the New York Times revealed that Huang had an affair with Nvidia's vice president of healthcare, Kimberly Powell. Huang has acknowledged being unfaithful to his wife. This scandal comes on the heels of Huang's acknowledgment of infidelity and the board's investigation into whether his relationship with Alice Huang was linked to a foreign intelligence operation.

Huang reportedly facilitated shipments of Nvidia chips to Chinese firms, a topic of scrutiny from lawmakers and investors. Following the latest revelation, Nvidia's shares fell about 8% in after-hours trading, with the company's stock losing over $300 billion in market value since the affair with Alice Huang was reported. If Huang were to step down, it would create a leadership vacuum at the $4 trillion company, a key player in the US-China AI race due to its dominance in chips used for training AI models and powering services like OpenAI's ChatGPT.