Nvidia succession fears rattle the AI industry

Hi, I'm Kim Vinnell in Whanganui, New Zealand. It's Thursday, November 12th. Today, the board of NVIDIA considers ousting CEO Jensen Huang, putting markets on edge. Migrants head to the US-Mexico border, hopeful the Democrat midterm victory will translate to easier passage. And a record crowd turns out for Pope Leo in Peru. This is Reuters World News, bringing you everything you need to know from the front lines in 10 minutes, 7 days a week. The future of NVIDIA CEO Jensen Huang is uncertain, after the company's board met late Wednesday to discuss whether to remove him. That's according to a source familiar with the matter. His ouster, if it happens, could have a dramatic impact not just on the AI industry, but on the entire world economy. It follows a new report from the New York Times that Wang had an extramarital affair with a NVIDIA executive who reported directly to him. That just days after Wang acknowledged being unfaithful to his wife amid a separate probe into his relationship with a Chinese businesswoman who U.S. authorities believe may be a Chinese spy. I asked Reuters technology editor Ken Lee how significant Wang leaving Nvidia would be. Sort of like like if Elvis left the building and he was running a four trillion dollar company. That's kind of what could be happening here. His significance to not just the company, but also to the global economy, being the provider of chips that have underpinned this whole AI revolution is hard to underestimate. He's been known as a very hands-on manager. There have been stories about how he We'll get into the technical nitty-gritty in meetings with clients in front of these 60 people and have intimate kind of knowledge of the engineering behind the products that they've made. NVIDIA did not immediately respond to a request for comment on the board meeting. And on Sunday, the company was still expressing confidence in Huang. But, Ken says, even without an obvious successor, analysts are already talking about possible replacements. A lot of talk around a few people. There's Ian Buck, who is a fairly high-ranking VP. He created CUDA, the computing platform that helps developers develop on NVIDIA chips, which is You know, probably one of the most important business moats for this company and has helped sustain their, you know, essentially near monopoly of AI chips. What he lacks is a public profile. But there's also externally Rene Haas, the head of ARM, who is a. Long-time former employee of NVIDIA, and he's very technical, technically savvy, is running a company at the moment, but that company is also a fairly significant partner for NVIDIA, so that might complicate on the business front. NVIDIA slid 8% after hours on the news. For the market's latest, here's Mike Dolan from our sister podcast, MorningBid. This is such a rapidly moving story. Lots of reports, counter reports, lots of things that we can and cannot verify. So what do we really know? We know that there was that board meeting last night. There are reports that Jensen Huang has been ousted as CEO, and the share price we know for certain is down 8% before the bell today. It shows you the concern in the market. If indeed he is ousted over all these allegations of spying and extramarital affairs, which which were added to overnight by another report that he had. Had an affair with a NVIDIA executive. But if these do lead to his ouster, who takes over next? And that is where the speculation is almost immediately going. Two names have popped around. One is his chief financial officer, Colette Kress, who has often been on the stage with Huang on many of the big NVIDIA events, and so is a very visible character. Another speculation is that one of the big engineers in the firm would be a better fit and named Ian Buck. has been circulated amongst people trying to guess about succession plans. We don't think there is a formal succession plan. But of course, what happens from here is really important. You can catch Morning Bid wherever you get your podcasts. Democrat Scott Colome has officially won the senator race in Mississippi, defeating Republican incumbent Cindy Hyde-Smith. That's according to U.S. media projections. The 43-year-old district attorney will now become the state's first black senator since the Reconstruction era that followed the U.S. Civil War. He's also the first Democrat to win a Mississippi Senate seat in more than 40 years. The Senate race in Alaska and 13 races in the House are still to be called. Even though newly elected lawmakers don't get sworn in till January, the midterms result is already having an impact at the U.S. border. Nearly 2,000 migrants are heading north from Tapachula, Mexico, with many saying the election result have made getting into the United States seem more possible. One of them is Elena Lameda from Venezuela, who says she now has a glimmer of hope. And while Democrats didn't run on opening the border, what could change is how Trump's immigration crackdown is carried out, with promises of greater oversight of ICE and immigration reform. Here's immigration reporter Julia Hart. Democrats are very fired up about reining in some of the more extreme tactics that ICE agents have used. There's also, you know, the spending. ICE has been given an unprecedented amount of money through reconciliation bills in the last couple of years. So the funding it has gives it kind of a blank check and it's going to be very difficult for them to actually take back any of the money because that would require legislation that the president could veto. But the third area where Democrats, I think, are excited to try and make some progress is opening new legal pathways for immigrants Thank Claim permanent residence in the U.S. or even pathways to citizenship for those that are here without legal status. Arizona Senator Ruben Gallego says the Latino voting bloc has given Democrats an opening to win back trust. And some of that has to start you. with us pushing hard on immigration reform. That includes potentially cutting a deal with Donald Trump. But, Julia says, getting a deal won't be easy. Any compromise would still need White House support. And she did point to one person in particular, the new chief of staff, Stephen Miller. He's very ideologically driven by this issue. And with the president primarily listening to him, as it seems he will be doing, the odds of a compromise being struck the way that it might have been with previous chief of staff Susie Wiles or other administration officials does seem more remote. A new Reuters Ipsos poll is offering an early look at the 2028 US presidential field. Among Republicans, Secretary of State Marco Rubio leads, with 45% calling him an excellent candidate, just ahead of Vice President J.D. Vance at 43%. On the Democratic side, Georgia Senator John Ossoff and former Transportation Secretary Pete Buttigieg are tied, each getting excellent candidate ratings from 29% of Democrats. Emergency workers searched for survivors after a three-story apartment building collapsed in Brooklyn. At least two people have been killed, but it's not known how many people were inside at the time of the collapse, and officials say the search could take days. The four-unit apartment building dates from 1930 and tumbled into an adjoining construction site where excavation work was underway. Spaniards have gone on their first general strike in more than 14 years, angry over a housing affordability crisis. From Barcelona to Bilbao, workers, students and tenants took to the streets, holding signs reading, my rent is killing me, and tax the rich. Spain needs about three quarter of a million more homes, a deficit which is set to grow to more than a million by 2028, according to the central bank. And finally, Pope Leo has wrapped up his visit to Argentina, his final mass drawing around 2 million people at the shrine of Our Lady of Lujan. He's now arrived in Peru, and this visit carries special significance, as Leo is the first Peruvian citizen to lead the Catholic Church. He spent about two decades as a missionary and bishop in the country, calling it his homeland on arrival. For more on any of the stories from today, as well as more analysis and news shaping our world, check out Reuters.com or the Reuters app. There's a link in the description to download it and start getting pure news straight from the source. Don't forget to follow us on your favorite podcast player. If you're listening on a smart speaker, just ask for the latest news from Reuters seven days a week. We'll be back a little later with an update.