WSJ learned about the plans of the Board of Directors of Nvidia to remove the head of the company
The Wall Street Journal sources said a board meeting could take place today. Earlier, Huang was accused of “close ties” with “Chinese spy” and subordinate
The Board of Directors of Nvidia is preparing to dismiss the founder and CEO of the company Jensen Huang, writes The Wall Street Journal (WSJ) with reference to sources familiar with the situation.
They said a meeting on Huang's "further fate" could take place today.
Earlier, The New York Times (NYT), citing sources, wrote that Huang, who is under investigation because of ties with the head of Megaspeed Alice Huang - her American intelligence agencies believe recruited by the Ministry of State Security of China, was in an extramarital relationship with a subordinate.
Nvidia Vice President Kimberly Powell. Two former employees of the company said that Huang and Powell were caught in a video of them showing "tenderness to each other" at a hotel in California during the company's conference. The NYT said it had not seen the recording.
Huang and Powell are married to other people.
Against this background, Nvidia shares at the moment fell from $ 165.26 to $ 156.46, data from the TradingView platform follow. As of 02:00 GMT, the shares are trading at a price of about $159 (-8.2%).
Huang was suspected of having "close ties" with the head of Megaspeed in early November. According to the Financial Times, the couple had not just close contacts, but a romantic relationship.
The head of Nvidia in an appeal to employees admitted to treason. He apologized to his wife and children, but did not name the woman he was in a relationship with.
The board of directors of Nvidia announced an independent investigation into a possible intelligence operation against the CEO. The audit will be conducted by independent directors with the involvement of external lawyers. The company stressed that there is no reason to consider state secrets or confidential information of Nvidia compromised. The Board of Directors expressed confidence in Huang, who will continue to lead the company.
US President Donald Trump also supported the head of Nvidia and spoke in favor of retaining his post. The Chinese Foreign Ministry, in turn, rejected the accusations of espionage, calling them baseless speculation and an attempt to denigrate the country.
Reuters later reported that investors had filed a class action lawsuit against Nvidia and Huang. The company and its CEO are accused of deceiving shareholders by hiding the businessman’s ties with the head of Megaspeed.
