The reported move threatens to end the Nvidia co-founder’s 33-year leadership tenure, as a separate investigation, investor concerns and questions over succession put the AI chip giant at a critical juncture.
Nvidia’s biggest challenge may no longer be confined to the race for artificial intelligence supremacy. The company is confronting a leadership crisis after reports emerged that its board is preparing to remove co-founder and CEO Jensen Huang, following allegations of two extramarital relationships that have triggered scrutiny of his conduct and raised questions about the company’s governance.
According to media reports, Nvidia’s board was preparing to oust Huang, 63, while Reuters reported that the board was meeting to consider his future. The developments followed reports of an alleged relationship with Kimberly Powell, Nvidia’s vice president of healthcare, and a separate controversy involving Alice Huang, a businesswoman reportedly suspected by US intelligence officials of links to Chinese intelligence.
No final decision to remove Jensen Huang had been confirmed at the time of reporting.
Two Allegations Put CEO Under Pressure
The latest controversy intensified after a report alleged that Jensen Huang had a relationship with Kimberly Powell, a senior executive who reportedly reports directly to him. Powell joined Nvidia in 2008 and rose through the organisation to become vice president of healthcare, overseeing initiatives involving medical imaging, life sciences and drug discovery.
The media reports, citing people who worked at Nvidia, said Huang and Powell were seen behaving affectionately at a hotel in San Jose, California, during the company’s annual developer conference in March. Some sources reportedly said the interaction was recorded. The allegations have not been independently verified, and the parties have not publicly confirmed the reported relationship.
The Powell allegations followed an earlier controversy involving Alice Huang, a Singapore-based businesswoman reportedly suspected of facilitating shipments of Nvidia chips to Chinese companies. US intelligence officials have reportedly examined possible links to Chinese intelligence, raising concerns about whether Jensen Huang was targeted by a foreign intelligence operation.
Board Investigation Adds to Uncertainty
Nvidia’s board announced on November 8 that it was launching an independent investigation following reports that Huang had been the target of a foreign intelligence effort. Independent directors, assisted by outside counsel, are overseeing the inquiry.
The board said it had no reason to believe that US national security or Nvidia’s confidential information had been compromised, while confirming that the investigation would examine all available information. Huang said he supported the review and would cooperate.
The reported consideration of Huang’s removal marks a significant shift from the board’s earlier public expression of confidence in him and his leadership team. Under Nvidia’s bylaws, directors can remove the CEO with or without cause through a majority vote, according to Reuters.
The company is also reportedly working with an outside firm to identify possible successors. According to the media reports, Chief Financial Officer Colette Kress has been mentioned as a potential interim leader, while Ian Buck, who oversees Nvidia’s data centre business, has attracted attention in discussions about longer-term succession. Neither has been formally named as Huang’s replacement.
Wall Street Reassesses Nvidia
The leadership uncertainty is adding pressure to Nvidia shares at a time when investors are already evaluating AI spending, demand visibility and restrictions on chip sales to China.
Nvidia shares fell more than 8% in extended trading after reports of a possible CEO ouster emerged. Reuters reported that the company’s market value could decline by around $600 billion over the week amid the turmoil.
Market movements have not been limited to Nvidia. In after-hours trading, rival chipmakers AMD and Broadcom reportedly gained around 4% and 3%, respectively, as investors considered whether prolonged disruption at Nvidia could create opportunities for competitors. However, there is no evidence that the leadership controversy alone will cause customers to shift their AI infrastructure spending.
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