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CNN reported that if Huang Renxun loses his position as CEO due to the investigation, Huida will not collapse in the short term, but its strategy, culture and AI fundraising capabilities will face major tests.
CNN wrote an article to discuss,Huida If you lose your CEOJen-Hsun Huang Can survive. Some experts pointed out that if Huang Renxun is dismissed, the market demand for Huida chips will not disappear immediately. A company’s competitive advantage is not based on just one person.
CNN reported that Nvidia is currently the world’s second-largest company by market value and the world’s most important artificial intelligence (AI) chip maker. Huang Renxun has served as the company’s CEO for 33 years since co-founding Nvidia in 1993.
Jen-Hsun Huang once said that he hoped to be able to work at a desk until the end of his life. He often talks about how integral he is to Huida’s roots. But soon, Huida will have to learn how to function without Huang.
Huang was having an extramarital affair with a client, and Huida was investigating whether the client was involved in espionage. Due to this incident he may have to lose the post of Chief Executive.
On the 8th, the shocking news of Huang Renxun’s extramarital affair was exposed, raising concerns that the AI industry may suffer a major blow: Huang Renxun helped lay the foundation of AI computing power, and this technology is bringing a revolution that is changing the global economy. Where would Huida be without Jen-Hsun Huang?
Ken Mahoney, chief executive of Mahoney Asset Management, said: “The loss of Huang will create great uncertainty, particularly given his impact on Huida’s strategy, corporate culture and relationships with major technology companies.”
Mahoney pointed out: “If this happens, Huida’s share price may face more pressure than it is now. He is an extremely important figure in the technology industry and the development of AI infrastructure.”
HUIDA’s board of directors said there is currently no reason to believe that US national security or HUIDA secrets have been compromised. Huang Renxun promised to continue leading the company.
However, Kathy Harrigan, professor of corporate leadership at Columbia Business School, pointed out that Huida’s board of directors “has an obligation to thoroughly investigate this matter” and that if Huang is indeed found to have leaked internal company information, he should be removed.
Harrigan noted that Huang Renxun and Huida may not have publicly discussed succession arrangements, but “a capable board of directors should have at least two candidates who are undergoing training, or have a good idea of what kind of talents should be recruited from outside if needed.”
He also said: “The responsibility of the board of directors is to protect the rights and interests of shareholders, so it must ensure that even if a sudden accident occurs tomorrow, the company can still continue to operate.”
Ann Lipton, a professor at the University of Colorado, Boulder School of Law, said that Huida’s board of directors is currently facing a difficult situation: on the one hand, it has an obligation to thoroughly investigate the matter, but on the other hand, if the investigation finds that the company has indeed suffered losses, Huida may face more shareholder lawsuits.
Mahoney points out that no business is completely dependent on a single person, not even a company like Huda that has a unique leader at the helm. In the long term, Huida may lose its competitive advantage as a result, but even if Huang is replaced, the market demand for Huida chips will not immediately disappear.
Mahoney said: “Huida’s situation is the same as Apple. Their competitive advantage is not based on one person. The big question is whether the successor can continue Huang Jensen’s strategic vision and ability to predict the future direction of the industry; and when the company encounters difficulties, how will this new leader be tested?”
Other analysts also believe that although the investigation will cause uncertainty to Huida and surrounding industries in the short term, it is unlikely to completely disrupt the company’s business.
