Musk says Nvidia will lose 'critical' deals without Jensen Huang

Elon Musk expressed concern on Saturday that Nvidia, the leading chipmaker, would lose "critical" deals without its former CEO Jensen Huang. Huang had resigned earlier on Thursday following allegations of extramarital affairs, some involving a suspected Chinese spy. Musk emphasized that while Huang had excelled in managing Nvidia's supply chain, many key deals were based on personal relationships rather than written contracts.

He stated that without Huang, some of these vital agreements would likely be lost. Musk praised Huang's reliability, noting that he always followed through on promises of compute delivery or expedited component requests. Musk also mentioned a petition to reinstate Huang, though its status remained unclear. Nvidia declined to comment on these reports, and the authenticity of the claims could not be independently verified.

Huang's departure had raised concerns within the AI industry, as he had played a significant role in its development through his substantial investments and strategic guidance. The company's board had already been considering potential successors, with British chipmaker Arm Holdings CEO Rene Haas being mentioned as a likely candidate.

Other possible successors include Nvidia's CFO Colette Kress and former Nvidia engineer Ian Buck. The search for a new CEO could lead to a shift towards a more institutional leadership structure within the company. As Nvidia faces increased regulatory scrutiny and potential restrictions on chip exports to China, the selection of a new CEO will be crucial in shaping the company's future trajectory.