Jensen Huang ouster tied to Nvidia credit deals, WSJ reports
Original title: Jensen Huang's ouster likely traces back to Nvidia's risky business practices more than his personal life
Under Huang, Nvidia guaranteed billions so cloud firms could buy chips; Colette Kress later halved the OpenAI deal.
The Wall Street Journal reports Huang was pushed out more for business practices than personal affairs. Nvidia offered AI cloud providers and data-center developers billions in guarantees to buy its chips, in return for a share of their revenue. Talks with OpenAI covered a $250 billion guarantee for an Ohio data center; shares fell 5% after that became public, and interim CEO Colette Kress cut the commitment in half before an August signing.
Unconfirmed: It has not been reported whether Huang left voluntarily or the board used personal affairs as leverage; US officials disagree on the spy evidence.
- Nvidia's average monthly stock multiple fell from 23 to 16 between May and October.
- The company responded with the largest share buyback in its history.
- Huang described cloud providers adopting alternative chips as an avalanche.
- CNN says evidence so far does not prove Alice Huang spied for Beijing.
- Vendors
- Nvidia
- Organizations
- OpenAI
- Countries
- United StatesChina
From the original article
2 min read at the-decoder.com
Jensen Huang likely left Nvidia more because of risky business practices than anything else, a Wall Street Journal report suggests. At the very least, those practices made him enemies internally. The company offered cloud providers billions in financial guarantees for chip purchases, including a planned $250 billion deal with OpenAI.
By Matthias Bastian · the-decoder.com
A short excerpt; the article and its images belong to the publisher. Summary, key facts and assessment above are AI-written from the article and can be wrong.