The Nvidia board of directors was discussing this Wednesday (11) the possible removal of its co-founder and CEO, Jensen Huang, according to Reuters, which cited a source familiar with the deliberations. The discussion represents an escalation in the governance crisis of the artificial intelligence chipmaker, but no removal had been officially announced.
The Wall Street Journal had reported that the directors were preparing a possible replacement of the executive. The news triggered an immediate market reaction: Nvidia shares fell about 8% in trading after the market close.
The company, valued at approximately US$ 4 trillion, did not immediately respond to Reuters' request for comment on the meeting.
Lack of a successor widens uncertainty about Nvidia
A possible departure of Huang would put the manufacturer before an especially delicate transition. The executive has led the company since its founding, in 1993, holds an ownership stake of approximately 3.6% and concentrates a large part of strategic decisions.
Nvidia does not have an obvious successor, according to Reuters. Gil Luria, director of technology research at D.A. Davidson, assessed that an immediate replacement would be difficult given the absence of a defined succession plan. He added that the board could act if legal violations or violations of internal policies were proven.
The discussion comes just three days after Nvidia announced, on November 8, an independent investigation to determine whether Huang had been the target of a foreign intelligence operation.
The investigation was prompted by reports about the executive's personal relationships, including allegations involving a woman suspected of links to Chinese intelligence. On Wednesday, the New York Times also reported a relationship with an executive subordinate to Huang, information that Reuters said it had not been able to verify independently.
When announcing the investigation, the board stated it had no reason to believe that corporate secrets or U.S. national security had been compromised. At the time, it also expressed confidence in Huang's leadership.
The new discussion about his remaining in the role therefore represents a distinct development from the investigation already announced. As of the publication of Reuters' report, there was no official confirmation of a decision on the succession.
