Trump, Musk Defend Jensen Huang Over Spy Affair Claims as Nvidia Board Weighs Firing Him Amid $600 Billion Wipeout
His billionaire allies call him irreplaceable just as the directors who employ him weigh his exit
Nvidia's board is reportedly preparing to remove chief executive Jensen Huang this week over an affair with a suspected Chinese spy, even as President Donald Trump, Elon Musk, and other backers defend him while shares face a potential $600 billion (£452.34 billion).loss.
The split could not be sharper. Some of the most powerful figures in US technology and politics are rallying behind Huang in public, while the directors who control his job reportedly consider firing the man who built one of the world's most valuable chipmakers.
What happens next reaches beyond Silicon Valley. Nvidia is held by many US retirement funds and index trackers, so a forced exit could unsettle ordinary portfolios.
Trump, Musk, and the Billionaire Defence
Trump called Huang 'an honorable guy' who had 'done an amazing job for our country', telling reporters he had not raised the allegations but believed Huang 'probably has an excuse for it'. Musk added his voice with a single reply, 'I agree', endorsing a defence from Sequoia Capital partner Shaun Maguire.
Maguire described Huang as 'irreplaceable for America's AI leadership' even as he called the conduct 'incredibly dumb'. Billionaire investor Bill Ackman urged the public to back Huang and his family, writing that he is 'human' and warning against judging a career by one mistake. Other investors have also expressed support.
The Board Moves the Other Way
Behind closed doors, the mood is colder. The Wall Street Journal reported that Nvidia's board is preparing to oust Huang and could meet as soon as Wednesday, with Reuters citing the account. Bloomberg reported the directors are already working with an outside firm on a replacement.
Under Nvidia's bylaws, a majority of directors can remove any officer with or without cause. The board praised Huang's leadership only days earlier, making the reported reversal striking. No successor has been named, and Huang has long dismissed succession planning, leaving the company exposed.
What the Spy Affair Claims Actually Say
Huang admitted in a note to staff that he had been 'unfaithful' to his wife. Reports identified Alice Huang, whom US intelligence officials reportedly suspect of passing information to Beijing, as his partner. They are unrelated. He said he did not know of any spying. Beijing called the accusations 'baseless and purely slanderous smears against China'.
The New York Times then reported a second affair, this time with Kimberly Powell, Nvidia's vice president of healthcare and a direct subordinate, citing five employees. Huang now faces a possible congressional subpoena if he refuses a closed-door briefing on the first relationship.
Why Your 401(k) Should Care
Nvidia briefly became the first $5 trillion (£3.77 trillion) company, and its weight in the S&P 500 index means it affects millions of retirement accounts. Reuters reported that an after-hours share decline could erase roughly $600 billion in value, and analyst Dan Ives of Yorkville Ives estimates it could shed up to 30% more if Huang is forced out, warning that 'Jensen is not replaceable'.
Not everyone expects a firing. The outcome remains uncertain, with directors reportedly weighing Huang's future. With results due on 17 November, the man his allies call irreplaceable may yet keep the job his directors are weighing taking away.
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