Major shareholders of Nvidia are advocating for the company’s board of directors to carefully consider all options for future leadership, including the potential reinstatement of its founder, Jensen Huang. This call comes after Huang’s resignation on November 12, which followed reports of personal relationships and an ongoing independent board investigation. While Nvidia’s official announcement did not specify a reason for his departure, the investors emphasize the need for a “slow, measured, and deliberate process” in selecting a permanent CEO, acknowledging Huang’s significant contributions to the extraordinary company.

Altimeter Capital, led by CEO Brad Gerstner, and Atreides Management, co-signed by Gavin Baker, collectively held approximately $2.13 billion in Nvidia stock as of June 30. Altimeter Capital’s stake alone represented nearly $1.9 billion, making Nvidia its largest disclosed equity holding. The firms’ letter to the board highlights that interim CEO Colette Kress, who previously served as Nvidia’s CFO for 13 years, is capably leading the company. However, they argue that Huang, as the long-time leader, deserves a thorough process before any rush to replace him, especially as all facts surrounding his resignation are not yet public.

Huang’s resignation has been linked to multiple affair allegations, notably one involving Alice Huang, a suspected Chinese spy who also worked with Megaspeed, an Nvidia customer. Singapore-based Megaspeed is currently under investigation by the U.S. Justice Department for allegedly rerouting some of Nvidia’s restricted artificial intelligence chips to China. The controversy has drawn high-profile attention, with SpaceX CEO Elon Musk publicly supporting Huang’s return, stating that “critical deals will be lost” without him. Musk also signed an online petition, “Stand with Jensen,” which has garnered over 100,000 signatures, including more than 5,000 current Nvidia employees.

Further complicating the situation, a separate letter has urged U.S. Secretary of Commerce Howard Lutnick to testify before the House Intelligence Committee regarding Megaspeed. Lutnick has agreed to appear before the Senate Banking Committee on December 10 to address the Commerce Department’s role in preventing China from acquiring advanced AI chips. Jensen Huang has also been requested to testify. The Justice Department’s involvement in the Megaspeed investigation reportedly escalated after an Nvidia lawyer contacted a senior Commerce official. Despite the ongoing controversies, President Donald Trump’s upcoming visit to China, scheduled for November 18-19, is not expected to include discussions about Nvidia or the alleged spy affair with Chinese President Xi Jinping, though Elon Musk is anticipated to join Trump on the trip.

Key Takeaways

• Major Nvidia investors are urging the board to consider Jensen Huang's return as CEO, advocating for a deliberate search process.
• Huang's resignation is tied to personal relationship allegations and an investigation into a customer, Megaspeed, for potentially diverting restricted AI chips to China.
• The situation has attracted significant attention, with Elon Musk supporting Huang and U.S. officials like Howard Lutnick facing calls to testify on AI chip export controls.

Editor’s Analysis & Impact

This unfolding saga at Nvidia, a titan in the AI chip industry, carries significant implications for both the company and the broader technology sector. The push by major investors for Jensen Huang’s potential return signals a deep concern over leadership stability and the strategic direction of a company critical to global AI development. His departure, intertwined with allegations of personal misconduct and a national security investigation involving AI chip diversion to China, highlights the geopolitical sensitivities surrounding advanced technology. The outcome of the board’s CEO search and the Megaspeed investigation could impact Nvidia’s market valuation, its relationships with international partners, and the future of AI chip export policies. This event underscores the increasing scrutiny on tech leaders and the complex interplay between corporate governance, personal conduct, and national security interests in the high-stakes world of artificial intelligence.

Frequently Asked Questions

Q: Who is Megaspeed and why is it relevant to Nvidia?
A: Megaspeed is a Singapore-based company and an Nvidia customer. It is currently under investigation by the U.S. Justice Department for allegedly redirecting some of Nvidia's restricted artificial intelligence chips to China, raising concerns about export controls and national security.

Q: Are there efforts to reinstate Jensen Huang?
A: Yes, major Nvidia shareholders, including Altimeter Capital and Atreides Management, have urged the board to consider Huang's potential return. Additionally, SpaceX CEO Elon Musk has publicly supported his reinstatement, and an online petition called "Stand with Jensen" has gathered over 100,000 signatures.