NVIDIA's board launched the investigation after reports revealed Huang had a relationship with Alice Huang, a businesswoman suspected by U.S. security agencies of acting as an asset for Beijing. Republican Senator Cramer demanded Huang step down over extortion risks, though his demand lacks formal legal authority over the company. Under NVIDIA's bylaws, directors can remove the chief executive at any time with or without cause via a majority vote. Meanwhile, Huang continues his executive duties and is cooperating fully with the independent inquiry.
Key points
Removing Jensen Huang from his role as chief executive would not automatically strip him…: Removing Jensen Huang from his role as chief executive would not automatically strip him of his seat on the board of directors.
NVIDIA stated it has found no evidence indicating company secrets or national security ma…: NVIDIA stated it has found no evidence indicating company secrets or national security matters were compromised during the incident.
Huang continues to perform his standard executive duties while actively cooperating with…: Huang continues to perform his standard executive duties while actively cooperating with the board's ongoing internal investigation.
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But while the senator has called for Huang's exit, NVIDIA's bylaws give its board of directors the power to remove him as chief executive, even without cause.
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Cramer, a member of the Senate Banking Committee, told Politico that the potential for extortion was so serious that Huang should leave the company. “The potential for extortion is so tremendous that something as sensitive as NVIDIA chips, I just think he's got to go,” he said.
The demand comes as NVIDIA's board has launched an independent investigation into reports that Huang was targeted by a foreign intelligence effort. The company has said it has no reason to believe that national security or NVIDIA secrets were compromised and that Huang has committed to cooperating with the review.
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