Jensen Huang’s Troubles Leave the AI Industry Reeling

Over the last few days, Huang’s status as an AI titan has come under scrutiny amid an admission that he had an affair with Alice Huang, an executive at a Singapore-based company whom US intelligence services concluded was a Chinese intelligence asset.

Nvidia’s board of directors said that the company would launch an investigation into the incident. Huang, the company said, “fully supports the review and has committed to cooperating with it.” Huang earned $36 million last year, owned about 3.5 percent of Nvidia as of March, according to a corporate filing—which also noted that Huang is an at-will employee who can be let go anytime without severance.

How exactly the investigation shakes out, and what it means for Huang’s future at the company, remains to be seen. But the incident at least puts his position at risk, and raises questions about how the industry will respond.

“He’s the person who decides who gets the chips and who doesn't,” says David Yoffie, a professor at Harvard Business School who tracks the chip industry.

Nvidia, which Huang cofounded in 1993, controls 90 percent of the market for chips used in training frontier AI models. With those chips in short supply, Huang has the power to determine which areas of AI get a boost next. Nvidia has also bankrolled much of the AI buildout, investing billions in the very companies buying its chips, such as OpenAI and Anthropic. When Elon Musk wants to build a new data center, Yoffie says, he can put in a call to Huang.

Internally, Huang closely manages even small details at Nvidia, responds to emails from any one of its roughly 60,000 staffers, and raises his voice to get points across, according to current and former employees. He’s a regular on cable TV and at tech conferences, where he’s been trying to deflate concerns about an AI market bubble and boost the positioning of his company.

But Nvidia has no other executive anywhere close to Huang’s prominence, and no apparent potential successor. “We have no idea who would replace him,” Yoffie says. “You put someone new into that position, if you're a customer, who knows what that's going to mean.”

Ryan Fedasiuk, a senior fellow at the think tank Foundation for American Innovation, says that Huang has played such an important role—and become so close to the president—that he has become load-bearing for the entire US AI industry.

“On the one hand, Huang is irreplaceable. He built Nvidia into the juggernaut it is today, and he was the visionary behind the GPU, which has sustained the intelligence revolution,” Fedasiuk says. But he says that the company, which is indispensable to the AI industry, has to come first.