Nvidia chief executive Jensen Huang is facing fresh allegations of a second affair, this time with a senior executive at the chip maker, as the company's board meets to decide whether he should keep his job.
The New York Times reported on Wednesday that Mr Huang had a relationship with Kimberly Powell, Nvidia's vice president of healthcare and one of his roughly 60 direct reports, citing five people who have worked at the company. Ms Powell has been with Nvidia for more than 18 years.
Nvidia has declined to comment on the allegation and has not said whether its board inquiry, launched on Sunday into Mr Huang's relationship with Alice Huang and led by law firm Wachtell, Lipton, Rosen & Katz, will be widened to cover it. The company's code of conduct addresses conflicts arising from personal relationships and requires reported misconduct to be investigated.
The allegation came days after Mr Huang admitted he had been "unfaithful" to his wife, following reports of a relationship with Alice Huang, a businesswoman whom US investigators accuse of spying for China. Nvidia's board opened an inquiry into whether he had been targeted by a foreign intelligence operation, while expressing confidence in his leadership. China has called the allegations "entirely groundless".
The Wall Street Journal reported late on Wednesday that the board was preparing to oust Mr Huang. Directors have also hired an outside firm to identify possible replacements, according to reports. Under Nvidia's bylaws, a majority of its 11 directors, all of whom, except Mr Huang, are independent, can remove the chief executive "with or without cause".
Nvidia shares, which closed 2.9 per cent higher at $173.73 on Wednesday, fell more than 8 per cent in after-hours trading.
The fallout extends well beyond the boardroom. Nvidia's chips underpin the global AI build-out, from US technology giants to sovereign projects in the Gulf, and the scandal has emboldened lawmakers seeking tighter controls on where those chips can be sold. Analyst Dan Ives of Yorkville Ives has estimated the company's value at $300 a share with Mr Huang as chief executive and $225 without him.
Mr Huang, 63, co-founded Nvidia in 1993 and has no obvious successor. Analysts have suggested chief financial officer Colette Kress as a possible interim leader.
Pressure is also building in Washington after House Republicans are pushing for Mr Huang to testify and have raised the possibility of a subpoena. Lawmakers from both parties are calling for tighter curbs on chip exports to China. US President Donald Trump has called Mr Huang "an honourable guy".
Mr Huang remains listed as the keynote speaker at Nvidia's GTC event in Washington, which runs from December 1 to 3.
