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Summary of article:
Several media reported that Huang was involved in extramarital affairs and security disputes. Huida’s board of directors said it is considering removing him as CEO and has begun a search for a successor. The White House said it would not intervene.
On the 11th, many media reported that the CEO of Nvidia (also known as Nvidia), a major artificial intelligence chip manufacturer,Jen-Hsun Huang Huida’s board of directors is now preparing to replace CEO Jen-Hsun Huang after the controversy over his affair with Chinese female spy Alice Huang escalated and the revelation of another extramarital affair.
Since the board of directors launched an independent investigation of Huang Renxun, Huida’s share price has declined in recent days, falling nearly 8% in after-hours trading on the 11th.
In addition to Huang Le, the New York Times reported on the 11th that Huang Renxun also had an extramarital affair with his married 48-year-old subordinate Kimberly Powell, deputy director of Huida Healthcare Business.
The Wall Street Journal first reported on the 11th that sources said that Huida’s board of directors will decide at a meeting on the evening of the 11th whether Huang will stay or not, and the White House will not interfere in the board’s decision; CNN later reported,trump Government insiders had widely expected him to step down. The board of directors has outsourced help in identifying a successor, Bloomberg reported, citing people familiar with the matter. People familiar with the matter said the board of directors is considering appointing an interim CEO first while searching for a permanent successor.
Reuters reported that Gil Luria, director of technical research at DA Davidson, said, “The immediate removal of Huang Renxun could pose challenges for Huida because the company has no succession plan, but if Huang Renxun broke the law or violated company policies, the board of directors would likely take immediate action once it has evidence.”
If Jen-Hsun Huang steps down as CEO, it will be the end of an era in which he created a global craze for artificial intelligence and rose to geopolitical stardom. Until then, Huida, one of the world’s most valuable companies, will need to find another leader. It is still not clear who will be the successor. Huang Renxun has said in the past that he does not believe in succession planning.
Reuters said investors and analysts said demand for Huida’s chips was unlikely to fall in the short term, adding that the broader group of businesses the company supports could be affected.
“Huida is also at the center of the revolving finance that is driving the investment boom,” said Nick Phares, chief investment officer at Vantage Point Asset Management in Singapore. “They are financing customers. In these bullish or bubble periods, sometimes all it takes is an economic downturn to turn it into a recession.”
As the co-founder of Huida, Huang Renxun is regarded by many as a representative figure in the artificial intelligence arms race (AI arms race). Known for his distinctive leather jackets and nonstop appearances at meetings and events around the world, he speaks with a high level of confidence, like a salesman selling a product the world wants.
Huida’s graphics processors are high-performance computer processors packed with billions of transistors and are the key elements behind what many see as the next wave of the industrial revolution. Huida’s importance to global customers has increased Huang Renxun’s value and made him a global celebrity.
He holds frequent meetings with senior officials from the United States and China, and frequently visits Taiwan, his birthplace and the manufacturing center of the global chip industry. Whenever he appears, he is surrounded by enthusiastic fans.
In a letter to his employees on the 8th, Jen-Hsun Huang admitted that he was unfaithful to his wife and apologized for betraying the trust of his family and employees. His character suddenly collapsed. Huang Le is a senior executive at Singapore data center company MegaSpeed, but US intelligence officials believe she works for Chinese intelligence agencies. MegaSpeed is under investigation by the US Department of Commerce through late 2024.
President Trump was impressed by Huang’s personal charisma and his argument that the AI craze could boost the economy, and Huang became a frequent visitor to the White House.
The Wall Street Journal reported that despite security concerns, Trump nevertheless approved the sale of Huida chips to China, and several of Huang’s policy proposals were adopted by Trump. Now, these measures are facing intense scrutiny from members of Congress and other officials.
