Overview
- Nvidia’s independent board was reported to be preparing to meet Wednesday to decide whether to remove Jensen Huang after media accounts disclosed a second extramarital relationship beyond his acknowledged affair with Alice Huang.
- The second relationship was reported to involve an Nvidia vice president, Kimberly Powell, and outlets said there is video purportedly showing the two being affectionate at a company event.
- Nvidia has retained Wachtell, Lipton, Rosen & Katz and former federal prosecutor Joon Kim to lead a board probe, while the FBI and the Justice Department continue separate inquiries of possible espionage and whether Singapore-based Megaspeed diverted Nvidia chips to China.
- Investors reacted sharply to the expanding scandal, with Nvidia shares falling and plaintiffs filing a class-action lawsuit that says the company and its CEO failed to disclose material risks, erasing hundreds of billions in market value in days.
- The case spotlights wider risks to U.S. AI infrastructure because Megaspeed paid for roughly $4.8 billion in Nvidia hardware and raises the prospect of tougher export rules, closer congressional oversight, and changes in how major tech firms vet leaders and guard sensitive information.