International News Nvidia Board Pursues Removal of CEO Jensen Huang Amid 'Personal Scandal' Controversy

The board of U.S. semiconductor company Nvidia has initiated procedures to remove Jensen Huang, co-founder and chief executive officer. The action comes as personal conduct allegations have escalated into internal compliance and national security concerns.

On the 11th (local time), the Wall Street Journal (WSJ) and major international media outlets, citing informed sources, reported that the Nvidia board convened an emergency meeting that evening and placed a motion for Jensen Huang's removal on the agenda for a vote.

The crisis originated from counterintelligence agency investigations into Huang and subsequent media exposures.

According to the WSJ and others, CEO Huang has formally acknowledged an extramarital relationship with an individual connected to a Singapore-based data center firm "Megaspeed" and suspected of links to Chinese intelligence agencies. In response, U.S. authorities including the Federal Bureau of Investigation (FBI) are intensively investigating whether approximately $7.5 billion worth of Nvidia AI chips have flowed to China in circumvention of U.S.-China semiconductor sanctions.

The New York Times (NYT) subsequently exposed allegations of in-company infidelity involving a senior female executive reporting directly to the CEO, intensifying criticism over poor internal controls in leadership.

The board, which had initially taken a cautious stance on removal, is reported to have moved toward a dismissal vote after receiving findings from an external independent investigative committee.

Assessments suggest that CEO Huang's ability to defend his management position is structurally near impossible. Unlike some tech companies such as Meta or Alphabet, Nvidia does not employ a "supervoting rights" system that would grant founders transcendent voting power.

Huang's stake in Nvidia amounts to approximately 3.6%, leaving him with no legal authority for self-defense if the board enforces a vote.

Given that CEO Huang has maintained hands-on management with direct reporting lines from some 60 executives, his removal is expected to create turmoil from the absence of a succession plan. Current interim CEO candidates include independent director Stephen Neal and Chief Financial Officer Colette Kress.

Following news of the removal initiative, Nvidia stock plummeted over 8% in after-hours trading on the New York exchange. Both Megaspeed and Nvidia have categorically denied allegations of illegal chip leakage or information theft, and China's Foreign Ministry has stated that espionage allegations are "groundless."

While a board decision statement and an official resignation announcement from CEO Huang have not yet been released, the voting outcome is expected to reverberate broadly across the global semiconductor and AI industry landscape.