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'Handshake' deals could fall: Musk flags risks for Nvidia after Jensen Huang's exit

By · Via Times of India · Published by Everything Blog

In short

Following Huang's departure over reports of extramarital relationships, Nvidia named Chief Financial Officer Colette Kress as its interim chief executive. Musk cautioned on social media that the former CEO secured several vital supply chain agreements through personal trust rather than formal written contracts. The loss of these unwritten pacts threatens to interrupt component flows just as global demand for artificial intelligence chips remains at an all-time high. Musk also noted that he is actively signing a petition aimed at reinstating Huang to his former role.

Key points

  • Elon Musk expressed serious concern that vital informal supply chain agreements will fall…: Elon Musk expressed serious concern that vital informal supply chain agreements will fall apart without Jensen Huang.
  • The sudden leadership transition poses potential operational risks for the dominant globa…: The sudden leadership transition poses potential operational risks for the dominant global supplier of artificial intelligence hardware.
  • Musk announced that he is signing an active petition seeking the reinstatement of the thr…: Musk announced that he is signing an active petition seeking the reinstatement of the three-decade company co-founder.

Sources checked by our analysis pipeline: 1

Nvidia could lose some of its key supply chain agreements following Jensen Huang's departure, Tesla and SpaceX CEO

Elon Musk has warned, pointing to the personal nature of several business arrangements made during the former chief executive's tenure.

Musk said Huang's ability to build and maintain relationships played an important role in securing deals for the chipmaker, with some agreements resting on personal assurances rather than written contracts.

Taking to X on Saturday, Musk said, "Jensen drove supply chain brilliantly at Nvidia, but many of those deals were a handshake with Jensen, not a written contract."

He further cautioned that Huang's absence could affect these arrangements. "Without Jensen, at least some of those critical deals will be lost," he added.

Musk's comments also come amid efforts to bring Huang back to the top job. On Friday, he publicly supported a petition seeking the former CEO's reinstatement. "A petition is underway to reinstate Jensen and I’m signing it too," Musk said in a post on X.

His support for Huang had also been evident earlier when a social media user suggested…

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