Nvidia CEO Jensen Huang faces board oust over alleged affairs

Allegations involve two women

The New York Times reported that Jensen Huang had an affair with Kimberly Powell, the company vice president of health care. She works under his supervision, and footage shows them displaying affection while staying at a hotel for a conference earlier this year. The Wall Street Journal separately stated that Nvidia's board is preparing to oust him while shares fell in after-hours trading on Wednesday. United States officials believe Huang's likely romantic interest Alice Huang, an executive at Megaspeed, is a Chinese spy feeding information back to Beijing.

Investigation expands to federal level

Over the past two years, Megaspeed, an artificial intelligence firm located in Singapore, allegedly acquired $4.8 billion worth of Nvidia processors. Both the United States and Singapore once examined Megaspeed because of concerns that the company might be unlawfully distributing chips to China. According to reports from The Times, the Justice Department has assumed control of the federal probe into the company. Chairman of the House China committee, Moolenaar, told Fox Business on Wednesday that Huang faces probable subpoenas if he refuses to attend a briefing.

Stock market reacts sharply

After hours trading on Wednesday saw Nvidia shares fall roughly 8 percent, while the company has lost 11 percent over the last five days. Huang rarely delegates authority, leaving the firm without a clear heir or transition strategy despite managing approximately 60 direct subordinates. He reportedly told a reporter he did not think they should be talking to him directly before hanging up the phone.