Nvidia board weighs ousting Jensen Huang after second alleged affair comes to light

Nvidia CEO Jensen Huang could lose control of the chipmaking giant as mounting personal controversies threaten his leadership. The company’s board is reportedly preparing to discuss his future following revelations about two alleged extramarital relationships.

The Wall Street Journal reported Wednesday that Nvidia’s board could meet as soon as November 12. Directors will reportedly consider whether Huang should remain CEO. The controversy involves his relationship with a Chinese businesswoman suspected of working with Beijing’s intelligence services. A separate report has also linked him to a senior Nvidia executive.

Nvidia shares dropped approximately 8% in after-hours trading following the reports. The latest selloff adds to a turbulent week for the world’s most valuable semiconductor company.

Two relationships under scrutiny

Reports emerged on Wednesday that Huang maintained an extramarital relationship with Kimberly Powell. She serves as Nvidia’s vice president of health care and reports within the company’s executive structure.

Five people familiar with Nvidia described the relationship to the newspaper. Two former company insiders also claimed they witnessed Huang and Powell behaving affectionately at a San Jose hotel. The encounter reportedly occurred during Nvidia’s annual GTC developer conference in March.

Three people briefed on the incident described another development. Huang’s security team allegedly confronted a bystander who recorded the interaction. The team reportedly offered the individual a nondisclosure agreement.

Both Huang and Powell are married to other people. Powell joined Nvidia in 2008 and gradually advanced through its leadership ranks. She became senior director of artificial intelligence business development in 2016. Nvidia appointed her vice president of health care in 2017.

Her responsibilities include expanding applications for Nvidia technology across medical imaging and higher education. She also represents the company at international technology conferences.

Nvidia’s employee code of conduct addresses potential conflicts involving personal relationships. It also requires the company to investigate reported misconduct. However, Nvidia has not publicly confirmed any investigation involving Powell.

Chinese spy allegations escalate

Huang’s reported relationship with Powell adds another complication to an existing controversy. It was previously reported that his relationship with Alice Huang. U.S. intelligence officials reportedly identified the Chinese businesswoman as an intelligence asset.

She allegedly helped facilitate shipments of Nvidia chips to Chinese companies. Beijing has denied the espionage allegations. Alice Huang has not responded to requests for comment.

Nvidia’s board launched an independent investigation into the Chinese connection earlier this month. Law firm Wachtell, Lipton, Rosen & Katz is overseeing the inquiry. Huang acknowledged being unfaithful to his wife in an internal employee memo.

He accepted responsibility without disclosing further details about the relationship. The board initially expressed confidence in his leadership following the announcement.

Republican leaders from three influential House committees have also requested a closed-door briefing. They want Huang to explain his interactions with Alice Huang. He could face a congressional subpoena if he fails to cooperate.

Leadership uncertainty grows

The allegations now place Nvidia’s leadership under unprecedented scrutiny. Jensen Huang co-founded the company in 1993 alongside Curtis Priem and Chris Malachowsky. He transformed its graphics processor business into a dominant supplier of artificial intelligence chips.

Nvidia now sits at the center of the global computing boom. Its technology also plays an increasingly important role in U.S.-China technological competition.

Losing Huang would create significant uncertainty for the roughly $4 trillion semiconductor giant. His departure could disrupt leadership continuity during a critical period for the industry.

When approached by The New York Times about Powell, Huang declined to discuss the relationship. He reportedly told the newspaper, “I don’t think you should be talking to me directly.” He subsequently ended the call.

Nvidia declined to comment on the latest allegations. Powell also did not immediately respond to requests for comment. The board’s reported deliberations could determine whether Huang remains at the helm of the company he spent three decades building.