Nvidia could lose key deals after Jensen Huang's exit, Musk says

In brief

• Elon Musk says Nvidia could lose some key deals after co-founder Jensen Huang resigned with immediate effect.
• Huang stepped down amid a scandal over his relationship with a woman U.S. intelligence suspects of spying for China.
• Nvidia shares fell as much as 14 percent on Thursday and extended losses on Friday.

Musk warns of lost deals

Elon Musk, who leads Tesla and SpaceX, said on the social network X that Nvidia will lose at least some of its key deals without Huang, who had run the company's supply chain. He argued that many of those agreements rested on a handshake rather than a written contract, so their continuation is now uncertain (Nvidia bez bývalého riaditeľa Huanga príde o niektoré kľúčové obchody, tvrdí Musk – HNonline.sk). The claim comes from Musk himself and has not been independently confirmed.

Huang steps down amid scandal

Huang, a Nvidia co-founder, resigned on Thursday with immediate effect. He gave up his posts as president, chief executive and board member. The move followed a scandal over his relationship with a woman whom U.S. intelligence agencies suspect of spying for China (Šéf Nvidie po škandále s údajnou čínskou špiónkou rezignoval, odstupuje okamžite – HNonline.sk). Nvidia announced the departure in a press release and said the decision was effective immediately.

Interim leadership

Chief financial officer Colette Kress will lead the company on an interim basis and remains in her finance role. Nvidia has also named Harvey Jones, former head of Synopsys and a Nvidia board member, as its first-ever chairman of the board. The company is searching for a permanent chief executive to replace Huang.

Shares fall

Nvidia shares dropped as much as 14 percent on Thursday after news of the resignation, and they fell again on Friday. The stock recorded its sixth consecutive weekly loss, the longest losing run since October 2012 (Nvidia bez Huanga přijde o část obchodů, tvrdí Musk. Akcie se v den jeho odchodu propadly o 14 procent – iROZHLAS). Before trading opened in New York, the shares had already dropped more than 12 percent to below $152.

Stake and customers

Huang remains one of the company's largest shareholders, holding about 3.61 percent of the stock, which makes him the fourth-largest shareholder. Companies linked to Musk are among Nvidia's significant customers.

Read also

• Nvidia opens independent probe after reports tie CEO Jensen Huang to alleged Chinese spy
• Jensen Huang Steps Down as Nvidia CEO After Affair Reports; CFO Colette Kress Named Interim Chief
• Jensen Huang steps down as Nvidia CEO after reports of ties to suspected Chinese spy; shareholders sue