After a second extramarital affair was discovered, Nvidia’s board of directors is reportedly preparing to oust CEO Jensen Huang. Details on when and who might replace him are not available.
Even as Apple faces increasing scrutiny over its approach to AI, there are real problems looming in the field of external AI. Nvidia CEO Jensen Huang admitted to having an affair with someone accused of being a Chinese spy.
According to a report from Wall Street JournalA second extramarital affair that came to light Wednesday forced the board to make a move. Huang could be ousted, although who might take over and the next plan are in question.
The AI sector was already experiencing deflation after investors lost confidence that it would remain profitable. Google’s results showing a reduction in ad revenue based on the move to AI summaries didn’t help.
Nvidia is a supplier of high-bandwidth memory and GPUs used in artificial intelligence, so an AI recession has affected the company as well. However, it was only when the story first came to light that the market reacted dramatically.
Over $800 billion was cut from Nvidia’s market capitalization in a single day. Uncertainty over Nvidia’s leadership kept the price low while the rest of the market adjusted to respond.
Apple remains above $5 trillion as its valuation is not supported by increasingly ambitious artificial intelligence promises. That remains about $1 trillion more than every other AI company that was said to be falling behind as early as this week.
Nvidia will be fine despite this scandal. It remains to be seen whether Huang’s ouster will be the final push that properly bursts the AI bubble.
