Nvidia searching for new CEO after Jensen Huang scandal tanks stock

Nvidia is scurrying to find a viable replacement for Jensen Huang after reports linked its founder and long-time CEO to not one, but two separate affairs outside of his marriage, one of which involves a Chinese spy suspect. To expedite the succession plan, the company is also seeking outside help, onboarding a dedicated firm to help find the next Nvidia CEO.It’s been a rough few weeks inside what’s undeniably one of the greatest tech companies ever made and rightly so, it has a reputation at stake. That reputation has been put to test — and even somewhat tarnished some might say — after Jensen himself revealed that he was unfaithful to his wife — Lori Huang — of more than forty years. As if his involvement with an alleged Chinese spy, Alice Huang, was not enough, news of a second affair with Nvidia executive Kimberly Powell broke cover. Nvidia clearly can't catch a break.What's the matter with Nvidia CEO?Jensen Huang was unfaithful to his wife, the Nvidia CEO revealed in a memo sent out to employees. The email was sent around the same time, reports started to emerge suggesting he had been having an affair with Alice Huang, formerly a top executive at the Singapore-based company called Megaspeed. Megaspeed was technically a customer of Nvidia which is to say that Jensen and Huang’s first contact might have happened over business.What muddies the water are suspicions that Alice may have been a Chinese spy sent out to “honeytrap” Jensen to try and sway him into sharing confidential Nvidia information while also influencing high-profile business decisions such as acquiring high-end Nvidia chips for China. The US has currently banned the sale of these chips to China citing national security concerns. The NYT said in its report that the US government may have known all along and in fact, a memo was apparently circulated within top officials of the Trump administration in spring of last year informing them about the “intel”. Nvidia, at that time, had claimed there was nothing “unusual” in the relationship between Jensen and Alice downplaying any romantic element. Beijing, too, had responded saying that Alice was not a Chinese spy.With Jensen’s confession, at least one of those things — his affair with Alice — was proven right. The jury is still out on whether Alice was also a spy. Before the dust even settled, Jensen was embroiled in another controversy. Reports said he was also involved with another woman. Allegedly, it was Kimberly Powell, Nvidia’s vice president of healthcare, who reports directly to him. The two were reportedly spotted being affectionate at a California hotel earlier this year.What is Nvidia’s back up plan?Nvidia likely has one way to go. Look for a replacement. But finding a replacement for Jensen Huang is easier said than done. He co-founded the company 33 years ago in 1993 and has been its only CEO ever since. Nvidia is synonymous to Jensen and vice versa.The company does not have a clear succession plan so far, and dozens of executives report directly to Jensen. This shows how completely the $5 trillion company relies on just one man. Because of this massive gap, the board is reportedly looking at naming an interim (temporary) CEO while they do a thorough search for the next Nvidia CEO.Reports suggest that Nvidia's Chief Financial Officer (CFO), Colette Kress, could be named the interim chief. Another co-founder, Chris Malachowsky, might also step in to guide the company during this rocky transition. Meanwhile, the board has launched an independent investigation led by the law firm Wachtell, Lipton, Rosen & Katz to get to the bottom of the Jensen controversy.Nvidia’s big dilemmaFiring Jensen Huang is not a simple decision. He is widely considered the global face of the AI revolution. Under his leadership, Nvidia's stock has surged by over 700,000%, commanding widespread respect from shareholders and customers.But keeping him could be even more troublesome. Lawmakers, investors, and the US government are worried about whether his relationship with an alleged Chinese spy put America's national security and Nvidia's trade secrets at risk. He could even face a congressional subpoena if he does not answer questions in a scheduled closed-door briefing soon.Stock market takes a hitThe ongoing drama has spooked investors. Nvidia’s shares dropped sharply, falling between 4% and 8% in extended trading after the reports surfaced, and are down nearly 20% since the scandals began.For now, Nvidia has not officially commented on the situation. The tech world is watching closely to see if Jensen Huang will lose his crown.- Ends