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Back“The loss of Jensen Huang is a real blow”: the fall of the Nvidia boss causes an earthquake on the AI planet
“The loss of Jensen Huang is a real blow”: the fall of the Nvidia boss causes an earthquake on the AI planet
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Le Figaro Actualités12 minutes agoBusiness2 min readFranceView original

“The loss of Jensen Huang is a real blow”: the fall of the Nvidia boss causes an earthquake on the AI planet

The founder and CEO of Nvidia is leaving his post and the board of directors following scandals linked to two affairs, including one with a vice-president and the other with a former manager suspected of spying for China.

Quick Look

  • Jensen Huang resigned as CEO of Nvidia and the board of directors on Thursday, after the New York Times revealed an affair with Kimberly Powell, vice president in charge of the health division.
  • This announcement adds to a pre-existing scandal concerning his relationship with Alice Huang, former Megaspeed executive suspected of spying for China and involved in illegal trafficking of AI chips to Beijing.
  • The board of directors, meeting urgently, took this decision a few days before the presentation of the financial results.

AI-generated summary

Why It Matters

Jensen Huang is the founder and sole boss of Nvidia since its creation thirty years ago. He had already been mired for several weeks in a scandal linked to his affair with Alice Huang, former director of Megaspeed, suspected of being a Chinese spy and at the heart of illegal trafficking of AI chips to Beijing.

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The fate of the boss of the most strategic technological company of the moment was sealed around an extramarital relationship, but not the one expected. Jensen Huang resigned Thursday, following an Nvidia board of directors meeting urgently during the night from Wednesday to Thursday. Events precipitated after the revelation by the New York Times of another affair that Jensen Huang had with one of his vice-presidents, Kimberly Powell, in charge of the group's health division, who therefore worked under his direct responsibility. This “scoop” precipitated the painful decision of the 11 members of the board of directors to immediately leave his position as general manager. The founder, and sole boss of Nvidia since its creation thirty years ago, had already been mired for several weeks in a much more serious scandal, linked to his affair with Alice Huang, a former manager of the Megaspeed cloud platform, suspected of being a Chinese spy and at the heart of illegal trafficking of the brand's AI chips to Beijing.

Last Sunday, Nvidia's board of directors still hoped to avoid getting to that point so quickly. While announcing the opening of an internal investigation, he renewed his confidence in Jensen Huang, despite his confessions about his relationship with Alice Huang. After the latest revelations, the situation was no longer tenable for the general manager, a few days before the presentation of the group's financial results scheduled for next Tuesday. Maintaining it exposed Nvidia to a wave of criticism from lawmakers, investors, customers – and even internally. He is also leaving the board of directors.

What to Watch

AI outlook — possibilities, not facts

  • A thorough internal investigation will be conducted into Jensen Huang's activities and AI chip trafficking.

    Very likely · Within weeks

  • A new CEO will be appointed to lead Nvidia.

    Very likely · Within weeks

  • US lawmakers could open investigation into chip trafficking to China.

    Likely · Within weeks

Open Questions

  • What are the conclusions of the internal investigation opened by the board of directors?
  • Who will succeed Jensen Huang as head of Nvidia?
  • What evidence exists regarding AI chip trafficking to Beijing?
  • What will be the impact on Nvidia's financial results scheduled for next Tuesday?

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This article was originally published by Le Figaro Actualités.

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