U.S. Treasury Secretary Scott Bessent has urged that an external executive be appointed to lead Nvidia, the California‑based tech powerhouse embroiled in controversy surrounding its ousted CEO, Jensen Huang.
During an appearance on Fox News’s Sunday Morning Futures, Bessent argued that Nvidia should consider candidates from outside the company when searching for a replacement for Huang.
“I believe the board should look beyond internal candidates when searching for a new leader,” Bessent told Fox News, emphasizing that “the recent internal issues require a dramatic shake‑up.”
Bessent’s remarks were made three days after Huang resigned on Thursday, following disclosures of extramarital affairs, one of which involves a woman U.S. officials suspect of having ties to Chinese intelligence.
Nvidia is a key player in manufacturing chips and AI computing components.
Consequently, Nvidia sits at the heart of a U.S.–China technology rivalry, with both nations vying for supremacy in the rapidly expanding artificial intelligence market.
Huang, a cofounder and longtime leader of Nvidia, has cultivated a close relationship with President Donald Trump’s second administration since 2025.
In August 2025, Huang successfully lobbied the Trump administration to ease restrictions on the export of H20 microchips to China, securing a deal whereby the U.S. government would receive a 15 % share of the sales.
In late October, The New York Times reported that Huang had an extramarital affair with Alice Huang, a former executive at Megaspeed, a client of Nvidia.
The article quoted unnamed U.S. intelligence officials who suspect that Alice Huang was recruited by China’s Ministry of State Security to assist Chinese firms in circumventing U.S. chip restrictions.
China’s Ministry of Foreign Affairs has dismissed the claims as “entirely groundless, speculative and intended to smear and malign China.”
Alice Huang has not commented publicly on the accusations and reportedly departed Megaspeed in 2025.
Tightening chip controls
Jensen Huang has long argued that broader access to U.S. technology would help maintain America’s competitive edge in the global artificial‑intelligence race.
Bessent, however, has raised concerns that Nvidia may have ignored possible illegal chip sales in order to boost its financial performance.
During his Sunday interview, Bessent proposed a 10‑day deadline for Nvidia to demonstrate compliance with U.S. export‑control regulations.
“We need answers within the next 10 days from the board and its external counsel,” Bessent said, adding, “I remain focused on Nvidia’s corporate culture and whether the company pressured questionable sales to inflate its revenues and earnings.”
The scandal has spurred bipartisan momentum in Congress to tighten U.S. chip export controls aimed at China.
Legislators such as Republican Senator Jim Banks and Democratic Senator Elizabeth Warren have attempted to leverage the annual defense‑authorisation bill to plug loopholes that allow Chinese firms to acquire advanced U.S.‑designed semiconductors.
Bessent, however, has argued that new legislation may not be necessary, telling Fox News host Larry Kudlow that existing export controls are adequate if simply enforced more rigorously.
“I don’t think we need additional legislation,” he said. “We already have the rules; we just need to enforce them effectively.”
A new leader for Nvidia?
Speculation about a successor to Huang has intensified since his departure.
The board has reportedly considered Arm Holdings CEO Rene Haas as a potential successor, the Financial Times says.
Haas previously worked at Nvidia for several years before moving to the British chip designer.
Former President Trump has also mentioned ex‑Apple CEO Tim Cook as a possible candidate.
In a Thursday post on Truth Social, Trump praised Huang’s tenure and endorsed Cook as an ideal replacement.
“A legend replaces a legend,” Trump wrote.
The Financial Times has also reported that Huang may seek to reclaim his former role, citing unnamed allies who are wooing Silicon Valley executives to back his reinstatement.
“Everyone who matters in tech outside the frontier labs loves Jensen,” a source told the publication.
CFO Colette Kress currently serves as Nvidia’s interim chief executive.
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