From CNBC · Ashley Capoot · · 2m
Nvidia board moves to oust Jensen Huang over affairs
The Nvidia CEO's stock plummets after reports of relationships with company employees, including one believed to be a Chinese spy.
In brief
The Nvidia CEO's stock plummets after reports of relationships with company employees, including one believed to be a Chinese spy. Nvidia's board is preparing to oust CEO Jensen Huang after reports of affairs with employees, one allegedly a Chinese spy, sending the stock down nine percent. Originally reported by CNBC.
Stock plummets on ouster news
Nvidia shares fell more than nine percent in after-hours trading on Wednesday after the Wall Street Journal reported the company's board is preparing to oust CEO Jensen Huang.
Huang had affair with executive
The New York Times reported that Huang had an extramarital relationship with Kimberly Powell, vice president of health care at Nvidia.
Powell leads Nvidia healthcare
Powell is responsible for the company's worldwide healthcare business, including hardware and software platforms for accelerated computing, AI, and visualization. She has been leading the group since two thousand seventeen.
Second affair with alleged spy
The report comes days after Huang admitted to an affair with Alice Huang, a woman U.S. intelligence officials believe is a spy for China's Ministry of State Security, according to the New York Times.
Huang apologizes to staff
In a message to Nvidia staff on Sunday, Huang wrote: I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry.
“I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry.”
Board launches independent probe
Nvidia's board of directors has opened an independent investigation and hired the law firm Wachtell, Lipton, Rosen and Katz to look into the spying allegations against Huang.
Board to meet Wednesday
Nvidia's board is preparing to meet as soon as Wednesday to determine Huang's future at the company, according to the Wall Street Journal.
Stock already under pressure
Nvidia's stock was down seven percent this week prior to Wednesday's after-hours drop and is on pace for its sixth straight weekly slide, reflecting broad concern about the sustainability of the artificial intelligence buildout.
What matters most
Nvidia's board is preparing to oust CEO Jensen Huang after reports of affairs with employees, one allegedly a Chinese spy, sending the stock down nine percent.
