Elon Musk says some of Nvidia’s 'critical' deals could be lost without Jensen Huang

Elon Musk has warned that Nvidia could lose some of its important supply chain agreements following Jensen Huang’s departure as CEO, arguing that several of the chipmaker’s business arrangements depended heavily on personal relationships. The Tesla and SpaceX chief said Huang had built partnerships based on trust and direct understanding, raising questions about whether those agreements will remain in place under new leadership.Elon Musk warned Nvidia could lose important supply chain deals after Jensen Huang’s departure, saying several agreements depended on personal relationships. REUTERS/Gonzalo Fuentes/File Photo/File Photo (REUTERS)Musk shared his comments on X on Saturday, November 14, pointing to Huang’s role in managing Nvidia’s suppliers and securing business arrangements. He suggested that some partners had agreed to work with Nvidia because of their relationship with Huang rather than through conventional written contracts.“Jensen drove supply chain brilliantly at Nvidia, but many of those deals were a handshake with Jensen, not a written contract,” Musk wrote. He added, “Without Jensen, at least some of those critical deals will be lost.”His remarks have brought attention to a possible challenge for Nvidia as it prepares for a leadership transition. The company is one of the world's biggest suppliers of processors used in artificial intelligence systems, making its relationships with manufacturers, suppliers and other business partners important to its operations.Elon Musk backs petition to reinstate Jensen Huang as Nvidia CEOMusk’s latest comments follow his public support for an effort to bring Huang back to the top position at Nvidia. On Friday, the billionaire said he would sign a petition seeking the co-founder’s reinstatement.“A petition is underway to reinstate Jensen and I’m signing it too,” Musk wrote on X.Also Read: ‘He always came through’: Elon Musk praises Jensen Huang, warns Nvidia could lose ‘critical’ deals without himHe had also indicated that he would welcome the opportunity to work with Huang. The response came after a social media user suggested that Musk should hire the former Nvidia chief. Musk replied, “That would be an honor.”Nvidia faces leadership change after Huang’s resignationHuang's departure followed reports about his alleged extramarital relationships. The New York Times reported an alleged relationship between Huang and Nvidia Vice President of Healthcare Kimberly Powell, citing five people who had worked at the company. The Wall Street Journal separately reported on his alleged relationship with Alice Huang, a Chinese businesswoman suspected by some US intelligence officials of having links to Chinese intelligence services.The reports also brought attention to questions surrounding Huang’s personal conduct and his position at the company he helped establish. Nvidia has appointed Chief Financial Officer Colette Kress as interim CEO while it looks for a permanent replacement.Also Read: Elon Musk backs petition seeking Jensen Huang's Nvidia return: ‘I’m signing it'Huang co-founded Nvidia in 1993 and remained at its helm for more than three decades. During that period, the company grew from a graphics chipmaker into a major supplier of processors powering the global AI industry.