Nvidia (Nasdaq: NVDA) directors gathered late Wednesday to weigh firing CEO Jensen Huang, according the Wall Street Journal, citing a person with knowledge of the talks. The company had not announced a decision by late evening. Its shares slid in after-hours trading.
The meeting followed a report that Huang had a second relationship. Five of the company’s employees told reporters he was involved with Kimberly Powell, a healthcare vice president who reports to him. Neither Nvidia nor Powell replied when asked for comment.
The board had stood by Huang days earlier. On November 8 it opened an independent investigation and voiced confidence in Huang and his team, after he admitted infidelity. “I was unfaithful to my wife,” Huang wrote in a message to employees. He did not name anyone or say how many relationships he had.
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Reports identified the first woman as a Megaspeed executive whom US officials reportedly suspect of spying for China. Megaspeed, based in Singapore, is an Nvidia customer. The board also said it had no reason to think the episode compromised national security or Nvidia secrets.
Read: Nvidia CEO Jensen Huang Admits Infidelity as Board Opens Investigation Tied to Alleged Chinese Spy
The board has enlisted an outside firm to compile possible replacements and is weighing an interim CEO, according to people with knowledge of the discussions. Huang, 63, owns about 3.6% of Nvidia. He has been the company’s only CEO since its founding and has no obvious successor.
Nvidia retained the law firm Wachtell, Lipton, Rosen & Katz to investigate the spying allegations. The company is scheduled to report third-quarter earnings on November 17.
