Reuters Reports Huang Had Relationship With Another Nvidia Employee; Trump Suggests Tim Cook as Successor

Since the Oct. 29 report tying Jensen Huang to a Megaspeed executive US intelligence suspects of spying for Beijing, the scandal has cost him the job he held for 33 years. On Thursday, Nov. 12, two more developments landed: a Reuters report of another relationship, and a CEO suggestion from the White House.

A second Nvidia employee

Reuters reported Thursday, citing two people familiar with the matter, that Huang had an intimate relationship with a second Nvidia employee. Reuters did not name her and said attempts to reach her were unsuccessful. Nvidia declined to comment.

The count depends on how you tally it. Kimberly Powell, Nvidia's vice president of healthcare, was the first Nvidia employee tied to Huang. The New York Times reported on Wednesday that she had an affair with him. She reported directly to him. The new report adds another employee. Counting Alice Huang, the Megaspeed executive, that makes three relationships alleged in total.

The Powell and new-employee claims each rest on a single outlet's sourcing. Huang has not responded to either in the material reported so far. He did acknowledge infidelity in a staff memo on Sunday, Nov. 8, apologizing for being "unfaithful to my wife." He did not name anyone.

The China angle

The Times reported on Oct. 29 that Huang had a "close relationship" with Alice Huang, a Chinese citizen and executive at Megaspeed. Megaspeed is described as the largest buyer of Nvidia chips in Southeast Asia. The Times reported that the US government believes she is a spy for the Chinese government.

China has said the spy allegations are unsubstantiated. No source in this reporting has produced public evidence of espionage. The affairs are personal. The question of whether a Beijing-linked buyer got access to sensitive chips through a relationship with the CEO is a national security matter.

The resignation and the board

Nvidia's board met for hours on Wednesday and announced Thursday that Huang had resigned as president, CEO and director, effective immediately. CFO Colette Kress is interim CEO.

The board said it is starting a search and will consider internal and external candidates. In its statement, the company said: "Jensen's contributions to Nvidia are profound. Nvidia is one of the most consequential technology companies in the world."

Huang founded Nvidia in 1993 and was its only CEO. The board has ten members.

Trump weighs in

President Trump suggested Tim Cook, the former Apple CEO, as Huang's replacement. CBS News carried the reaction. The suggestion is not binding. Nvidia's board picks the CEO, and the company has not said Cook is under consideration.

Money and markets

Bernstein cut its price target on Nvidia from $400 to $200 on Thursday. Breitbart News said shares were down more than 5% when it published its report.

A price target is an analyst's estimate, not a market price. The stock's actual moves will show how investors weigh a leadership vacuum at the center of the AI chip trade.

What the board hasn't answered

The board has not said when it learned of the relationships. It has not said whether any of them broke company policy or whether it had concerns about reporting lines. Business Insider noted the new report "raises more questions about how much Nvidia knew." That is an open question, not a finding.

The Commerce Department side of this is also unresolved. Republican lawmakers and incoming Democratic committee leaders have been asking why Megaspeed is not on the Commerce entity list. Those answers will not come from Nvidia's board.

For now, Kress runs a company with a roughly $4 trillion valuation and no permanent CEO. Whether the board goes inside, outside, or toward Trump's suggestion is the next thing to watch.