SpaceX CEO Elon Musk predicted on Saturday that Nvidia will forfeit significant business opportunities following the departure of its longtime chief executive, Jensen Huang. In a post on his social media platform X, Musk asserted that many of Huang's most valuable partnerships were built on personal trust rather than formal agreements.
"Jensen drove supply chain brilliantly at Nvidia, but many of those deals were a handshake with Jensen, not a written contract," Musk wrote. "Without Jensen, at least some of those critical deals will be lost."
Huang resigned on Thursday amid intense scrutiny triggered by a New York Times report in October alleging that a Chinese businesswoman, Alice Huang, had smuggled AI chips into China while developing a "close relationship" with the Nvidia chief. The report also detailed an extramarital affair between Huang and a female Nvidia executive who reported to him, according to five company insiders.
The resignation has sent ripples through the tech and political worlds, raising questions about Nvidia's future leadership and its ability to maintain its dominant position in the AI chip market. The turmoil has sparked jitters in financial markets, with investors closely watching for any signs of instability.
Musk, who has previously hinted at admiration for Huang, said earlier that it "would be an honor" to hire him. That statement, made before the resignation, underscored the high regard in which Huang is held in the industry.
President Trump weighed in on the situation via Truth Social, suggesting that former Apple CEO Tim Cook should step in to lead Nvidia. "There is only one man to take his place – TIM COOK of Apple," Trump wrote, adding, "A Legend replaces a Legend!"
Nvidia's board initially announced an independent investigation into the allegations, and on Tuesday the company retained former acting U.S. Attorney Joon H. Kim and his firm, Wachtell, Lipton, Rosen & Katz, to conduct the probe. The investigation is expected to examine Huang's interactions with the alleged spy and any potential security lapses.
In a statement reported by Bloomberg, Huang admitted to being unfaithful to his wife, saying, "My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry."
Republican lawmakers have called Huang to appear at a closed-door briefing on November 18 to address concerns about Nvidia's security protocols and his ties to the alleged spy. The congressional pressure is not expected to subside with his resignation, as lawmakers seek clarity on the full extent of the situation.
The unfolding scandal has also drawn attention to the broader issue of AI chip exports and national security. Democrats are probing the administration's handling of Nvidia chip deals with China, and Commerce Secretary Howard Lutnick has agreed to testify before the Senate as the controversy deepens.
