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Jensen Huang's potential ouster from Nvidia throws AI world into a storm

Santa Clara, Nov 12 (UNI) The prospect of CEO Jensen Huang leaving Nvidia has thrown the artificial intelligence industry into uncharted territory, with potential consequences extending far beyond the company and raising comparisons with the turmoil caused by Sam Altman's temporary removal from OpenAI in 2023.
Nvidia sits at the centre of the global AI economy, supplying the chips, investments and financial backing that support an ecosystem of companies collectively worth trillions of dollars.
Huang, who has led the company for 33 years, has become almost synonymous with both Nvidia and the AI boom.
"This is no ordinary CEO. This is no ordinary company. This is no ordinary sector. This is no ordinary time," economist Mohamed El-Erian wrote on X, warning of possible repercussions across the industry, reports Axios.
Until recently, the prospect of Nvidia operating without Huang appeared unthinkable. Despite revelations about his affair with a woman suspected by US intelligence officials of having links to Chinese intelligence, President Donald Trump, Nvidia's board and prominent figures in Silicon Valley had continued to support him.
However, reports of a second affair, this time involving an executive who reported directly to Huang, have unsettled that support and put his position under fresh pressure.
Following the latest revelations on Wednesday night, Nvidia's board reportedly held discussions about Huang's future. No decision had been reached by early Thursday, although the White House had been briefed on the situation.
The market reaction has been severe. Nvidia had already lost more than $1 trillion in market value since the initial scandal emerged, with its shares falling further in after-hours and pre-market trading following the latest reports. Prominent technology analyst Dan Ives said the company would be worth 25% less without Huang at the helm.
Huang's rise has been a defining Silicon Valley success story.
A Taiwanese immigrant, he went from cleaning toilets at a boarding school in Kentucky and waiting tables at Denny's to building one of the world's most valuable companies.
In 1993, Huang and two fellow engineers developed the idea for Nvidia over a meal at a Denny's restaurant. The chipmaker went on to transform the gaming industry and modern computing before becoming a central force in the development of artificial intelligence.
His trademark black leather jacket and high-profile appearances helped turn him into one of the industry's most recognisable figures, attracting large crowds and the attention of world leaders.
The uncertainty surrounding his future comes at a difficult time for the AI sector, which is facing growing financial, political and regulatory risks as companies pour money into one of the largest infrastructure expansions in history.
The situation is also particularly sensitive for Anthropic, whose planned initial public offering, backed by a $10 billion commitment from Nvidia, is expected to test investor confidence in the AI industry.
Huang has repeatedly defended the sector's soaring valuations against warnings of a speculative bubble. His personal troubles could now add to concerns about the sustainability of the AI investment boom.
The fallout may also reach the Trump administration, particularly over its handling of sensitive technology exports to China.
Huang developed close ties with Trump and Commerce Secretary Howard Lutnick, whose department eased restrictions on some chip sales despite concerns raised by other officials over alleged Chinese espionage and smuggling.
Senior Senate Democrats have already called on Lutnick and other administration officials to preserve records of their dealings with Nvidia and Huang, potentially paving the way for a wider congressional investigation.
After Huang acknowledged his first affair, veteran China watcher Bill Bishop wrote: "There is rarely just one lie."
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