Nvidia's board of directors is reportedly considering ousting CEO Jensen Huang, who allegedly had a second affair.
The founder of Nvidia is reeling after having to admit to a relationship with a woman who is believed to be a Chinese spy. The stock of the chip developer is losing significant ground.
Nvidia's founder, Jensen Huang, is facing potential dismissal by the company's board amid allegations of a second affair. The chip developer's shares have plummeted sharply following reports from the New York Times and the Wall Street Journal. Huang is accused of having a relationship with a subordinate manager, which violates Nvidia's internal rules.
Earlier, Huang admitted to having an affair with a manager at a Singaporean company. U.S. intelligence agencies suspect this woman, known as Alice Huang or Huang Le, is a Chinese spy. Nvidia has been accused of helping Chinese entities gain access to Nvidia's latest chips, despite U.S. restrictions on exporting these products to China.
Analysts and observers have been cautious about calling for Huang's dismissal, but they agree that his poor judgment in entering into an extramarital relationship is concerning. Nvidia's CEO is a central figure in the company and the AI industry, having co-founded Nvidia 33 years ago and turning it into one of the world's most valuable companies.
He oversees the market for specialized semiconductors that enable the efficient training and operation of the latest AI language models. Nvidia has also become the industry's quasi-bank, providing loans and special supply terms to AI model developers and other suppliers to help the AI ecosystem grow and generate more revenue for Nvidia.
The revelations about Huang could potentially trigger a new crisis in the AI sector, given his crucial role in the company and the industry. Nvidia's dominance in the market for specialized semiconductors makes it highly profitable, but there are concerns about the solidity of the company's various links, especially among AI model developers and data center operators who operate with significant leverage.
Huang has no clear successor at Nvidia, as he has no designated heir among his 60 direct subordinates. Discussions are now even being held about his daughter, alongside a former Swiss spy. Despite being highly indebted, a developer of data centers is boosting its revenue and providing some relief to nervous investors, but the strategy remains highly aggressive.
Written by urgent.news from NZZ Wirtschaft's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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