newsfilter
← Interviews
Bloomberg Television49 min

Nvidia’s Huang Ousted by Board

Huang, Emily Chang, Ed Ludlow, Michael Deng, Carol Masser, Tim Stenevek, Charlie Pellett, Emily Grafeo

Interview, Conference Presentation, Press Conference
  • NVIDIA CEO Jensen Huang was ousted by the board following reports of two extramarital affairs, one with a woman suspected of spying for China and another with an internal NVIDIA employee.
  • Huang, the company's only CEO in its 33-year history, will forfeit approximately $108 million in unvested equity and will have no future association with the company as an employee, advisor, or chairman.
  • CFO Colette Kress has been appointed interim CEO while retaining her role as Chief Financial Officer.
  • The board appointed Harvey C. Jones as NVIDIA's first-ever formal chair; previously, Huang had operated as CEO and director without the chairman title.
  • NVIDIA shares fell 14.4% intraday, eventually settling down 6% with a market capitalization dropping below $4 trillion.
  • President Trump suggested Apple CEO Tim Cook as a potential successor to Jensen Huang.
  • The U.S. Justice Department is investigating Alice Wong (Jensen Huang's partner and wife of Supermicro CEO Charles Liang) for potential espionage and for entities linked to her attempting to smuggle Super Microcomputer products to China.
  • Super Micro Computer (SMCI) shares fell 10.7% as prosecutors probe the company's role in the alleged smuggling efforts.
  • Singapore has denied Alice Wong re-entry, while Beijing has officially denied her role as a spy; she is currently residing in Beijing.
  • Bloomberg's "The Circuit" hosted an interview with Jensen Huang one month prior to his ouster; during the interview, Huang discussed the high standards expected of CEOs and the responsibility of the AI industry, unaware his tenure was ending.
  • Jensen Huang holds less than 4% of NVIDIA's equity (approx. $140 billion value) and lacks voting power due to the company's lack of dual-class shares, a structure established when NVIDIA went public in 1999.
  • Analysts have noted the absence of a clear succession plan for the $4 trillion company, with Huang's daughter, Madison Huang, previously rumored to be a potential successor despite her recent absence from public view.
  • The scandal is expected to impact U.S.-China AI relations by cooling the atmosphere ahead of the APEC summit and potentially strengthening calls for stricter export controls on AI chips to China.
  • U.S. officials are questioning the Department of Commerce and White House regarding how long they knew about potential national security risks associated with Huang's relationship and chip exports to China.
  • Microsoft reported widespread technical issues with its Outlook and workplace software during the trading session, though shares remained largely unaffected.
  • The U.S. Postal Service filed notices for a 5.9% average price increase on domestic and international shipping effective January, excluding stamp price hikes.
  • CoreWeave shares fell 7% after analysts cut price targets despite the company's ability to borrow in the investment-grade bond market through complex structuring.
  • NVIDIA's interim leadership and subsequent earnings report next week are expected to be critical in determining whether the company can maintain its AI infrastructure dominance without its founder-CEO.