Nvidia fallout deepens as Musk backs petition to reinstate Huang

Elon Musk has joined a growing campaign to return Jensen Huang to the helm of Nvidia, days after the chipmaker's co-founder abruptly resigned as chief executive amid a scandal involving an alleged Chinese spy and extramarital affairs.

Musk said on X on Friday that he was adding his name to a petition urging Nvidia's board to reinstate Huang. "A petition is underway to reinstate Jensen and I'm signing it too," he wrote, according to Interesting Engineering. The Tesla and SpaceX chief had previously defended Huang.

Board moved fast

Nvidia announced Huang's departure on Thursday, Nov 12. CBS News reported that the board said Huang resigned as chief executive, president and board member "effective immediately." The interim CEO is Colette Kress, Nvidia's chief financial officer since 2013, who will continue in that role while a permanent successor is sought. Harvey Jones was named the company's first board chair.

"The Board has full confidence in Colette and the leadership team, and we expect the company's operations, customer commitments and product roadmap to continue without interruption," Jones said.

The resignation followed an investigation into Huang's relationship with Alice Huang, an Nvidia customer and Chinese citizen who is no relation to him and whom U.S. intelligence agencies suspect of spying for China. President Trump said the FBI is investigating romantic and business ties between the two.

The Guardian reported that the board hired law firm Wachtell, Lipton, Rosen & Katz for a "thorough and independent" investigation. It also noted a New York Times report that five Nvidia employees alleged Huang was romantically involved with a subordinate, vice-president of healthcare Kimberly Powell, and that Reuters later reported a relationship with a second employee.

Market shock

Shares in the world's most valuable chipmaker plunged 13% when Wall Street opened, before closing down 4.3% at $166.19 on Thursday — wiping more than $180bn off Nvidia's value in a day and around $490bn over the week, leaving it valued near $4tn, per The Guardian.

Not everyone wants a comeback. Trump, who had initially defended Huang, posted that Apple's Tim Cook should take the job: "A Legend replaces a Legend!" Interesting Engineering also reported that an internal Nvidia suggestion-box post drew more than 1,600 comments, most favoring Huang's return according to WIRED. Nvidia has not announced a permanent CEO.