Bessent Calls for Radical Leadership Change at Nvidia After Huang's Ouster

US Treasury Secretary Scott Bessent said on Sunday that NVIDIA needs a "radical change" in its leadership after the ousting of CEO Jensen Huang, calling on the board to look outside the company for new leadership, according to Bloomberg.

Bessent added, in an interview with Fox News' "Sunday Morning Futures," that recent developments lead him to believe the board should bring in a candidate from outside NVIDIA to lead the company.

He continued: "This makes me think that as the board searches for a new leader, they should look outside the company," adding: "They needed a radical change."

Bessent also demanded clarifications on whether NVIDIA deliberately ignored warning signs related to shell companies, many registered in Singapore, suspected of being used to transfer advanced AI chips to China.

He said: "I want to go back again to the question of what is happening inside NVIDIA, and whether they are pushing these seemingly illegal sales to boost revenue and profits."

He added that he wants answers "within the next 10 days" from the company's board and the outside legal counsel investigating the matter.

Bessent's comments come amid escalating US scrutiny of Singapore-based Megastar International, which has become the focus of investigations into whether Southeast Asia served as a channel for advanced NVIDIA chips to reach Chinese entities despite US restrictions.

Bessent had previously blamed Commerce Secretary Howard Lutnick and his department for failing to add Megastar to the US trade restriction list, stating that the Treasury Department supported taking action against the company.

Crisis That Led to Huang's Ouster
Bessent's call follows days of widening crisis surrounding Huang, after revelations about his relationship with Alice Huang, founder of Megastar, whom reports say US agencies suspect of ties to Chinese intelligence—allegations Beijing denied.

The New York Times later revealed another extramarital affair between Huang and Kimberly Powell, NVIDIA's Vice President for Healthcare, raising further questions about governance and conflicts of interest within the company.

The crisis led to an independent investigation by NVIDIA's board and increased pressure in Congress regarding the company's security policies and exports to China, before Huang left his position.

The company now faces a succession challenge, given the pivotal role Huang played since co-founding it in 1993 and transforming it into the largest player in the AI chip market.

The repercussions of the case shifted within days from a personal conduct issue involving Huang to a broader debate about NVIDIA's internal culture, oversight of US chip exports, and the priority of national security considerations in the company's dealings with foreign markets.