Nvidia’s board is preparing to remove founder and CEO Jensen Huang after reports of two extramarital affairs, including one with a woman U.S. intelligence officials believe is a Chinese spy.
The Wall Street Journal reported Wednesday that directors are weighing Huang’s future and could meet as soon as that day to decide next steps. The move follows the New York Times’ report of a second relationship with Kimberly Powell, Nvidia’s vice president of healthcare, who reports directly to Huang. Neither Huang nor the company has confirmed the second relationship.
Huang, 63, acknowledged one affair in a memo to employees on Sunday. “I was unfaithful to my wife,” he wrote. “My actions hurt her and our children. There is no excuse for what I did.”
He did not name the other person but said he supported the board’s investigation and would cooperate fully. Nvidia’s board said the same day that it had launched an independent inquiry into reports that Huang “has been the target of a foreign intelligence effort.”
The board added that it had no reason to believe national security or company secrets were compromised and expressed confidence in his leadership.
That relationship involved Alice Huang, no relation, a former executive at Singapore-based Megaspeed, a major Nvidia customer. U.S. officials have concluded she worked for Chinese intelligence, according to prior reporting by the New York Times and Wall Street Journal. China has denied the allegation. Megaspeed has faced scrutiny over large purchases of advanced Nvidia chips and questions about possible diversion to China.
Nvidia shares fell more than 8 percent in after-hours trading after the Wall Street Journal report. The company has no formal succession plan, and Huang has about 60 direct reports. Under Nvidia’s bylaws, a majority of the independent directors can remove an officer with or without cause.
President Trump has said he spoke with Huang, who told him he had no idea the woman was a spy. The board has not announced a final decision.
