Nvidia's board of directors has prepared to oust Chief Executive Jensen Huang following revelations that the tech billionaire engaged in two extramarital affairs, including one with an alleged Chinese intelligence operative and another with a subordinate executive, The Wall Street Journal reported.
The board is preparing to convene as early as Wednesday evening to determine Huang's future at the helm of the artificial intelligence chipmaker.
The development comes after The New York Times reported that Huang, 63, maintained an undisclosed relationship with Kimberly Powell, 48, Nvidia's vice president of health care.
Market reaction was immediate, with Nvidia shares sliding roughly 8 percent in after-hours trading.
According to former staff members, Huang and Powell were captured on video being affectionate at a San Jose hotel during Nvidia’s annual developer conference in March.
Members of Huang's security detail reportedly witnessed a bystander filming the exchange on a mobile phone, sequestered the individual, and offered a non-disclosure agreement.
Workplace conduct
Powell, who joined Nvidia in 2008 and rose to lead its health care and medical imaging initiatives, regularly represents the company on global stages.
Under Nvidia's corporate code of conduct, employees are instructed to avoid conflicts of interest, including personal relationships with direct subordinates.
When questioned by telephone regarding the relationship on Wednesday, Huang responded: "I don't think you should be talking to me directly," before disconnecting the call.
Both Huang and Powell are married to other partners.
The boardroom crisis compounds mounting pressure on Huang, who co-founded Nvidia in 1993 and steered it into the world's pre-eminent supplier of advanced artificial intelligence hardware.
The company's board had already initiated an internal investigation, overseen by law firm Wachtell, Lipton, Rosen & Katz, after US intelligence officials identified a Chinese businesswoman with whom Huang had become close—identified as Alice Huang—as a Chinese intelligence asset.
Beijing has denied the espionage allegations.
