Nvidia board meeting on Huang's future stretches into evening
Nvidia's board met late Wednesday to decide CEO Jensen Huang's future after reports of two affairs, while Elon Musk said hiring him would be an honor.
Board weighs Huang's future
Nvidia's board met late Wednesday to decide whether to oust chief executive Jensen Huang, CNBC confirmed, after The Wall Street Journal first reported that the board was preparing to force him out. The meeting stretched into the evening, with no outcome announced.
The board is also weighing an independent investigation into whether Huang was targeted by a foreign intelligence operation, after he acknowledged over the weekend that he had been unfaithful to his wife.
Two affairs behind the crisis
The New York Times reported that Huang had a romantic relationship with Kimberly Powell, Nvidia's vice president of health care, who has led the group since 2017. The Times said the two were captured on camera being affectionate at a hotel in San Jose, California, in March.
Huang also acknowledged an affair with Alice Huang, a business executive U.S. intelligence officials believe was recruited by China's Ministry of State Security. The Information reported that the relationship helped at least $7.5 billion worth of Nvidia chips reach Chinese firms.
Independent probe under way
Nvidia's board hired law firm Wachtell, Lipton, Rosen & Katz to run an independent investigation into the spying allegations. Huang has also hired Heller, a crisis public relations firm, according to CNBC.
In a message to Nvidia staff on Sunday, Huang said, "I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did," adding, "I am deeply sorry." Nvidia and Powell did not respond to CNBC's request for comment.
- Nvidia after-hours quote$158.78 (-8.61%)
- Nvidia regular-session close$173.73 (+2.87%)
- Chips reportedly sent to China$7.5 billion
Musk says hiring Huang would be an honor
Late Wednesday, the finance account ZeroHedge wrote on X, "Elon please hire Jensen." Tesla chief executive Elon Musk replied, "That would be an honor."
The exchange was not a formal job offer, and no role or terms were reported. Musk's companies are major buyers of Nvidia's advanced chips that power artificial intelligence.
Shares slide after hours
Nvidia shares closed Wednesday at $173.73, up $4.84, or 2.87%, then fell 8.61% in after-hours trading to $158.78, down $14.95. The stock had already fallen 7% that week and was on pace for a sixth straight weekly slide.
Asian stocks wobbled at the start of Thursday trade as Nvidia's slide weighed on S&P 500 futures, which slipped 0.4%, according to Reuters.
