Nvidia CEO's future uncertain after board weighs removal over second relationship

Nvidia CEO Jensen Huang faces potential removal by the board following revelations of a second relationship with a company executive, causing Nvidia shares to drop about 8% in premarket trading on Thursday and raising questions about the company's future as a major AI financier. Under Huang, Nvidia invested billions in AI companies, including $30 billion in OpenAI, $5 billion in Intel shares, and $2 billion in CoreWeave, while also guaranteeing up to $105 billion in leases for OpenAI data centers. Analysts say Huang's personal credibility was instrumental in forging these partnerships, and a successor might adopt a more cautious approach to capital allocation. Experts warn that reduced predictability in Nvidia's financial support could raise borrowing costs for AI infrastructure operators like CoreWeave, whose shares fell about 7% in premarket trading. However, existing contractual obligations would remain intact, and large technology companies with strong balance sheets are better positioned to absorb any transition.