Jensen Huang stepped down on Thursday following revelations involving extramarital affairs and an alleged Chinese spy. In response, Treasury Secretary Scott Bessent appeared on Fox News' "Sunday Morning Futures" urging the chipmaker to conduct a complete external leadership overhaul. Bessent also set a 10-day deadline for Nvidia's board and outside counsel to address inquiries regarding export compliance. Meanwhile, the company's directors have already approached Arm Holdings chief executive Rene Haas to take over the post.
Key points
Government officials are pressing Nvidia to select outside leadership to navigate its esc…: Government officials are pressing Nvidia to select outside leadership to navigate its escalating governance crisis.
Scrutiny regarding trade compliance has intensified due to an affair involving a suspecte…: Scrutiny regarding trade compliance has intensified due to an affair involving a suspected Chinese spy.
The semiconductor firm has initiated replacement talks by reaching out to the head of Bri…: The semiconductor firm has initiated replacement talks by reaching out to the head of British chipmaker Arm.
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WASHINGTON, Nov 15 : US Treasury Secretary Scott Bessent on Sunday said Nvidia needs to "go outside the company" as it seeks a new chief executive after Jensen Huang abruptly stepped down last week.
Huang stepped down on Thursday after revelations of extramarital affairs, including one involving a suspected Chinese spy, plunging the chipmaker into crisis.
"This makes me think that as the board conducts a search for a new leader that they need to go outside the company, that just (with) what was going on inside the company, they need a dramatic shakeup," Bessent told Fox News' "Sunday Morning Futures" show.
Bessent also said Nvidia's board and outside counsel needed to answer, within the next 10 days, questions about the company's culture of compliance with export restrictions.
Nvidia's board has approached British chipmaker Arm Holdings CEO Rene Haas in its search for a potential replacement for Huang, the Financial Times said on Friday.
Scrutiny surrounding semiconductor export practices has intensified with demands aimed directly at the tech giant's governance and revenue drivers. Inquiries focus on whether unauthorized transactions with Chinese buyers were utilized to artificially enhance financial metrics. The move pressures the firm to reevaluate top leadership amid broader concerns over sensitive technology transfers.
Bessent has stated that Nvidia requires a dramatic leadership shakeup. No further details were provided regarding the specific reasons for the call or what changes were recommended.
Tech leaders, company personnel, and investors are mobilizing against the Nvidia board's abrupt ouster of the executive over disputed espionage claims. Critics argue the sudden leadership change lacked due process and jeopardizes the organization's stability. Supporters are now demanding an independent investigation alongside a transparent, evidence-based hearing.