Jensen Huang, the CEO of Nvidia, has lost a large part of his wealth in a single morning. In the first 30 minutes of trading on Monday (US time), he lost about Rs 70,000 crore and fell to 10th place on the list of the world’s richest people.
Nvidia is a top name in artificial intelligence, and Huang owns about 3.5 percent of the company, which makes him its biggest individual shareholder. Forbes says his net worth fell by $7.4 billion (roughly Rs 70,000 crore) to $154.7 billion. He was earlier in 8th place. Warren Buffett of Berkshire Hathaway and Larry Ellison of Oracle have now moved ahead of him.
Nvidia shares are under pressure for a few reasons. These include the effect of the US elections, worry that data centre construction may be delayed, and investors cashing in their profits. Investors are also nervous about the news that Huang admitted to an affair with Alice Huang, a woman who is alleged to be a Chinese spy. The company’s board has started an internal investigation. By the time US markets closed, Nvidia shares had fallen more than 4 percent, which cut both the company’s value and Huang’s wealth.
Divorce could add to his problems
Huang has publicly apologised to his wife, Lori Huang. If she files for divorce, he could face more trouble. Under California law, property earned during a marriage is split equally. On that basis, Lori could get more than $70 billion. The two have been married since 1985. So far, there is no report that a divorce has been filed.
What happens to Huang now?
Media outlets around the world are guessing about his future.
- If it turns out that he did not knowingly share any secret information, he may keep his job. The company would likely tighten its rules, and there would be closer watch on how sensitive information is shared. If he hid important facts from the board or had a conflict of interest, he could be forced to leave.
- If the advanced AI chip technology went to China against export rules, he would be in serious trouble, and could even face a criminal case. If pressure grows from the government, customers or investors, he may step down on his own for the good of the company.
