Nvidia's board of directors is preparing to oust chief executive officer Jensen Huang following disclosures regarding two extramarital relationships, including one with a senior corporate subordinate and another involving a woman alleged to be a Chinese spy, as reported by The Wall Street Journal.
The board's impending move follows reporting from The New York Times detailing that Huang maintained an extramarital relationship with Kimberly Powell, Nvidia's vice president of health care. The relationship has been discussed inside the company, according to five people who worked at the chip-maker.
Powell, 48, reports directly to the 63-year-old CEO. Both Huang and Powell are married to other people.
According to sources familiar with the matter, Huang and Powell were observed behaving affectionately at a San Jose hotel during Nvidia's GTC developer conference in March.
A bystander recorded the interaction on a smartphone, after which members of Huang's personal security detail sequestered the individual and offered them a non-disclosure agreement to sign, according to three people briefed on the incident. The New York Times noted it had not viewed the video.
During that same conference in March, Powell — who joined Nvidia in 2008 and was promoted to lead its healthcare unit in 2017 — delivered a presentation on artificial intelligence applications in biology that featured cartoon depictions of Huang.
Such relationships conflict directly with Nvidia's corporate code of conduct, which explicitly directs employees to avoid situations, including personal relationships, that generate internal conflicts. The policy states that the company "promptly investigates reports of misconduct."
When reached by phone on Wednesday by The New York Times to address his relationship with Powell, Huang said, "I don't think you should be talking to me directly," before hanging up.
This development compounds an existing crisis surrounding the chip-making giant. Earlier this week, Huang admitted in a memo to Nvidia employees that he had been unfaithful to his wife, following revelations regarding his relationship with Alice Huang — no relation — who U.S. intelligence has said facilitated shipments of Nvidia chips to Chinese firms as part of a foreign intelligence operation. China has denied the espionage claims.
Nvidia's board previously launched an internal investigation into the matter led by law firm Wachtell, Lipton, Rosen & Katz. Additionally, Republican leaders of three House committees have called for Huang to appear for a closed-door briefing regarding his interactions with the alleged intelligence asset.
The revelations have drawn criticism from lawmakers, investors and Nvidia's board over Huang's conduct.
Nvidia shares fell approximately 8 percent in after-hours trading following Wednesday's reports. The stock has wiped out more than $300 billion in market value since disclosures regarding Alice Huang first emerged.
If Huang leaves, it would create an immediate leadership gap at the $4 trillion chipmaker, which is the driving force behind the global AI boom and the technological rivalry between the U.S. and China.
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