Key Summary
- Wall Street Journal reported that Nvidia’s board is preparing for the possible dismissal of CEO Jensen Huang.
- The report said the development followed allegations involving an additional extramarital relationship with a senior employee.
- The article also said Huang had previously faced scrutiny over a separate relationship allegation involving a person described as linked to China’s intelligence services.
- Nvidia’s stock fell more than 8% in after-hours trading after the reports circulated.
Main Story
Reports in U.S. media have placed Nvidia CEO Jensen Huang under renewed pressure, with the Wall Street Journal saying on Monday local time that the company’s board is preparing for his possible removal.
The report linked the board’s move to fresh allegations that Huang had an extramarital relationship with a senior company executive. It said the scrutiny also stems from an earlier controversy involving a woman identified in previous reporting as being suspected of ties to Chinese intelligence.
Separately, the New York Times reported that Huang was accused of having a personal relationship with Kimberly Powell, a vice president who oversees Nvidia’s healthcare and life sciences business. The Times said its account was based on statements from five former Nvidia employees. It also reported witness accounts from a hotel near the company’s annual GTC developer conference in March, where the pair were allegedly seen behaving affectionately. One witness said he recorded the encounter on a mobile phone. Another claim in the reporting said Nvidia security personnel later took the person who recorded the video aside and offered a nondisclosure agreement, although the Times said it had not independently verified the video itself.
Powell is listed on Nvidia’s corporate website as a senior executive responsible for healthcare work spanning medical imaging, life sciences, drug development, and medical analytics, as well as related computing, AI, and visualization technologies. The report also said she reports directly to Huang.
Questions about a possible relationship between a chief executive and a direct report could raise corporate ethics and conflict-of-interest issues. Nvidia’s code of conduct says employees should avoid situations that may create conflicts of interest through personal relationships and states that the company will investigate reports of improper conduct.
When asked about the matter in a phone call with the New York Times, Huang reportedly replied, “I don’t think you should speak with me directly,” and did not offer a detailed response. Nvidia has also not issued a formal public statement, according to the article.
The controversy appeared to affect investor sentiment. Nvidia shares fell by more than 8% in after-hours trading at 5:45 p.m. local time on the day of the report.
WSJ said the alleged additional extramarital relationship was part of the background for the reported board preparations. The article also said Huang had previously been drawn into controversy over a relationship with Alice Huang, identified as a former executive at a Singapore data center company and described as someone suspected by some as a spy for China’s Ministry of State Security.
Background
The supplied text says Nvidia is a leading company in the AI semiconductor market and that its CEO has previously faced public scrutiny over personal relationships. No additional background was provided beyond the allegations and the company’s stated conduct rules.
Items Requiring Further Verification
- The Wall Street Journal’s report that Nvidia’s board is preparing to dismiss Huang.
- The allegations about a second extramarital relationship involving a senior Nvidia executive.
- The New York Times’ account based on five former employees and witness statements about the GTC hotel incident.
- The claim that Nvidia security proposed an NDA after someone recorded the encounter.
- The reported association between Huang and Alice Huang, including the characterization of her as a suspected spy.
- The exact extent and cause of the after-hours stock decline, which is presented as linked to the reporting.