Nvidia May Remove CEO Jensen Huang: What We Know So Far

In short: Nvidia's board is reportedly weighing whether to remove co-founder and CEO Jensen Huang, according to the Wall Street Journal. Reuters and CNN, citing sources, say directors were meeting Wednesday evening, and Nvidia hasn't announced a decision. The reports cite two alleged affairs: one with a woman U.S. officials reportedly believe is a Chinese spy, and one with an executive who reports to him.

A note on sources: the removal reports rely on unnamed sources. Huang admitted in a Nov. 8 memo that he was unfaithful to his wife but didn't name anyone. Nvidia, Huang and the executive haven't confirmed the second relationship, and Nvidia hasn't confirmed any plan to remove him.

What's reported

• The board is deciding. The Wall Street Journal said directors could act as soon as Wednesday evening, and Reuters and CNN, citing sources, said they were meeting that night. Huang co-founded Nvidia in 1993 and has run it for 33 years.

• A second relationship. The New York Times reported Wednesday that Huang also had a relationship with an executive who reports to him, which raises a workplace-conduct question on top of the security one. Nvidia, Huang and the executive haven't confirmed it.

• A search for a replacement. Bloomberg reports the board is working with an outside firm to find CEO candidates and may name an interim CEO. Nothing has been confirmed.

• A shareholder lawsuit. Rosen Law Firm says it filed a class action Tuesday in federal court in San Jose, accusing Nvidia and Huang of misleading shareholders about the national security concerns.

How we got here

• Oct. 29: The New York Times reports Huang has a close relationship with a Megaspeed executive U.S. officials believe is a Chinese spy. Nvidia says the interactions weren't unusual.

• Nov. 5: Three House chairs ask Huang for a closed-door briefing on Nov. 18 about the reported ties.

• Sunday, Nov. 8: Huang emails employees, and Nvidia publishes the memo. It opens, "I owe my family and all of you an apology," and says he was unfaithful to his wife. He doesn't name anyone.

• Also Nov. 8: The board opens an independent investigation overseen by a committee of independent directors. It says it has no reason to believe national security or company secrets were compromised, and that it has confidence in Huang. A spokesperson tells NBC News he's committed to leading Nvidia as CEO without interruption.

• Monday and Tuesday, Nov. 9–10: Nvidia's stock falls about 9.5% over the two days, per CNN. On Tuesday, the board retains former acting U.S. attorney Joon Kim and his firm, Wachtell Lipton, to run the investigation.

• Wednesday, Nov. 11: The Times reports the second relationship, and the Journal reports the board is preparing to remove him. Nvidia's stock falls about 8% in after-hours trading.

Why it matters

• Nvidia has no clear replacement. Huang runs the company hands-on and has said about 60 people report directly to him. Reuters notes he has no obvious successor, and CNN reports he has said he doesn't believe in succession planning.

• Nvidia's own filings flag the risk. Its latest proxy statement warns that the company depends heavily on its longtime executive team, Dow Jones reports.

• Huang is a major shareholder. Reuters reports he's 63 and owns about 3.6% of Nvidia's stock.

• Lawmakers are paying attention. Rep. Brian Mast told ABC News he's prepared to subpoena Huang if he doesn't respond to the briefing request, and House China committee chairman John Moolenaar said Wednesday a subpoena is likely without Huang's agreement. ABC7 reports Huang hadn't answered by Wednesday's deadline.

What we still don't know

• What the board decided at its meeting, if it reached a decision

• Who would lead Nvidia in the meantime, and who might take the job for good

• What the independent investigation will find

• Whether any secrets or information were actually exposed

• How Huang and Nvidia will respond to the reports

What to watch next

• An official announcement from the board, or an SEC filing, naming a new or interim CEO

• The results of the independent investigation

• How Nvidia's stock does when markets open

• Whether Huang agrees to the Nov. 18 House briefing or gets subpoenaed

• Nvidia's earnings report on Tuesday, Nov. 17, which now comes with a leadership question attached

This story is moving fast, and details may change. We'll update it when the board's decision is clear.

Sources

• The Wall Street Journal: Nvidia is preparing to oust CEO Jensen Huang

• The New York Times: Huang and Nvidia affair report

• Reuters via Investing.com: Nvidia board meets to decide CEO Huang's future

• CNN: Nvidia board discusses CEO Jensen Huang's future (live updates)

• Bloomberg: Nvidia board to probe spying case after Huang admits infidelity

• TechCrunch: Nvidia's stock drops as board reportedly preps to oust CEO Jensen Huang

• TechCrunch: The unfolding Jensen Huang scandal, a timeline

• ABC7 San Francisco: Nvidia preparing to oust CEO Jensen Huang after 2nd affair revealed

• ABC7 San Francisco: House Republicans consider issuing subpoena to Nvidia CEO Jensen Huang

• NBC Philadelphia: Nvidia opens investigation after reports CEO was targeted by Chinese intelligence

• CBS News: Nvidia and CEO Jensen Huang face shareholder suit

• Dow Jones via Tiger Brokers: Jensen Huang doesn't believe in succession planning

• House China Committee: Moolenaar, Mast and Crawford seek briefing from Jensen Huang

• NVIDIA: A Message to Our Company (Nov. 8)

• NVIDIA: Statement From NVIDIA Board of Directors (Nov. 8)

• NVIDIA: Statement From the Independent Members of the NVIDIA Board (Nov. 10)

• NVIDIA: Sets conference call for third-quarter financial results