Can Nvidia's board rein in Jensen Huang? Analysts say he's too big to sanction

Nvidia's board has launched a probe into CEO Jensen Huang over a scandal involving a woman suspected of spying for China, but analysts say sanctioning him would be nearly impossible in practice.

The New York Times reported Monday (local time) that Huang wields such sweeping decision-making authority and control within Nvidia that the board would struggle to break that grip.

The board earlier announced it would form an independent committee to conduct the investigation, saying it would "carefully review all available information" and that "Jensen has agreed to fully support and cooperate with the probe." At the same time, however, the board said it had seen "no evidence that national security or Nvidia's confidential information has been compromised" and expressed confidence in "Jensen and the management team" — remarks that drew skepticism about whether the investigation could proceed fairly and objectively.

Concerns about the probe's impartiality stem in part from the fact that Nvidia has no clear second-in-command or successor to Huang. Huang has been credited with leading the company through what observers describe as a "reality distortion field" — a term associated with Apple co-founder Steve Jobs.

Huang rejects the traditional organizational chart, receiving direct reports from roughly 60 executives, personally reading thousands of emails each day and driving projects across the entire organization. Even Jobs gradually handed over management to Tim Cook as his health declined, but Nvidia has said Huang will remain in his role throughout the investigation.

Questions have also been raised about whether the board operates with genuine independence. Four of the 10 directors are longtime allies — including associates from the venture capital firms that backed the company at its founding and executives from partner companies dating to the 1990s. Former employees say Huang has long treated the board as a formality rather than a meaningful part of the company's strategy and execution.

Huang's political and policy influence outside the company is also considerable. He speaks regularly with President Donald Trump and has successfully lobbied for the easing of export restrictions on AI semiconductors bound for China. Trump publicly defended Huang even after the CEO acknowledged an affair with the woman identified as a suspected Chinese spy.

Huang's public profile has grown to match his corporate stature. His signature black leather jacket sold at auction for $960,000, and at one event a female fan asked him to autograph her chest.

Against that backdrop, The New York Times reported that the rise of Huang's children — Spencer Huang and Madison Huang — and his son-in-law Nico Caprez within the company has fueled resentment among employees. Their direct access to a CEO who concentrates decision-making power has created an unusual internal power dynamic, the paper said.

At a press briefing at the Consumer Electronics Show in January, Huang was asked whether he intended to remain Nvidia's CEO. "As long as I'm worthy of it, I will," he said. "Nvidia is a leader in the industry, and I feel a great sense of responsibility being its CEO."

The New York Times suggested that even if the board were to remove Huang, his children could emerge as potential successors.