Nvidia board weighs Jensen Huang’s future: Can it remove its founder?
Summary
Nvidia’s board is weighing whether to remove cofounder and CEO Jensen Huang after reports of extramarital relationships, including one involving a woman U.S. officials suspect of ties to Chinese intelligence. The reports triggered a sharp decline in Nvidia’s shares, while the board investigates and considers succession options.Key Facts
- Nvidia’s bylaws allow a majority of its 11 directors to remove Huang with or without cause.
- Huang owns about 3.6 percent of Nvidia and does not have majority voting control.
- Nvidia said its board had launched an independent investigation into whether Huang was targeted by a foreign intelligence effort and expressed confidence in his leadership.
- The New York Times reported that Huang had relationships with two women; the article said U.S. officials suspect one of them of working for Chinese intelligence, a claim China has denied.
- Nvidia shares fell more than 8 percent in after-hours trading on Wednesday after The Wall Street Journal reported that the board was preparing to oust Huang.
- Huang cofounded Nvidia in 1993 and has led the company since then.
- The article names CFO Colette Kress and engineer Ian Buck as possible internal successors, while noting that no decision had been announced.
- Nvidia is estimated to control 80 to 90 percent of the market for chips used to run advanced AI.
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