Nvidia Board Probe Raises Questions on Huang’s Succession
Nvidia's board is investigating a reported foreign intelligence effort targeting CEO Jensen Huang, and Bloomberg says a successor search is under way.
Nvidia’s board has opened an independent investigation after reports that chief executive Jensen Huang was the target of a foreign intelligence effort, and Bloomberg reported on Thursday that the company is looking at possible successors to the founder of the world’s most valuable chipmaker. Nvidia has said Huang remains committed to the company, and he has not been removed.
What happened
Nvidia said in a statement on Sunday, Nov. 8, that a committee of independent directors, advised by outside counsel, will oversee the inquiry. The board said it has “no reason to believe” that national security or company secrets were compromised, but that the review will examine all available information. It also said it has confidence in Huang and his leadership team, and that Huang “fully supports the review and has committed to cooperating with it.”
The probe follows reports that U.S. intelligence agencies believe Alice Huang, an executive at Singapore-based cloud company Megaspeed, passed information to Beijing, according to CNBC, which attributed the claim to earlier reporting by The New York Times and the Financial Times. ABC News noted that the two Huangs are not related. The New York Times reported on Oct. 29 that Jensen Huang had a close relationship with her.
Neither Alice Huang nor Megaspeed responded to ABC News’ request for comment. China’s foreign ministry called the “so-called Chinese spy narrative” unsubstantiated, CNBC reported, citing Reuters. An Nvidia spokesperson earlier told ABC that Huang’s interactions with her were “not unusual or unexpected” and part of his job. These are allegations; no charges have been announced.
In an internal email to employees, Huang acknowledged infidelity. “I was unfaithful to my wife,” he wrote, according to CNBC, adding that he had “fallen short” of his responsibilities and was “deeply sorry.” The message did not name any person, ABC reported.
Reports of a possible ouster
ABC News reported that The Wall Street Journal said the board was preparing to meet as soon as Wednesday to decide Huang’s future. ABC said it had not verified that report and had asked Nvidia for comment. ABC also said The New York Times, citing unnamed company sources, reported that Huang allegedly had an affair with an Nvidia executive who reports to him. ABC could not verify that claim, and Huang has not publicly addressed it.
Against that backdrop, Bloomberg reported on Nov. 12 that Nvidia is searching for a replacement for Huang, a task it described as daunting. Bloomberg’s report profiled possible candidates, including Colette Kress, Nvidia’s chief financial officer; Ian Buck, the Nvidia executive known as the inventor of CUDA, the company’s software platform for programming its chips; Rene Haas, chief executive of chip designer Arm; and Johny Srouji, Apple’s chief hardware officer. Nvidia has not publicly confirmed a succession search, and none of the named people has been reported to have commented. Nvidia’s proxy statement to U.S. regulators does not name a successor, according to press accounts.
Why it matters
Huang co-founded Nvidia and has led it since 1993, and the company’s chips power much of the artificial intelligence industry. Nvidia shares closed down 4.27% on Monday, Nov. 9, CNBC reported, while shares of rivals including AMD, Broadcom and Intel rose.
The matter has also drawn political attention. President Donald Trump said Huang “probably has an excuse” that should be heard, according to CNBC, and ABC reported Trump said Huang told him, “I had no idea that she was a spy.” Republicans on the House Select Committee on China have asked Huang for a closed-door briefing on Nov. 18, and Rep. Brian Mast, chair of the House Foreign Affairs Committee, said he is prepared to subpoena Huang if he does not respond to the request by Wednesday, ABC reported.
What comes next
Nvidia reports third-quarter earnings on Nov. 17, CNBC said. The board inquiry has not produced findings. It remains unconfirmed whether the board will act on Huang’s position, whether a formal succession process exists, and whether the congressional briefing will take place. Nvidia said it will provide further updates as appropriate.
