'Handshake' deals could fall: Musk flags risks for Nvidia after Jensen Huang's exit

Elon Musk with Jensen Huang

Nvidia could lose some of its key supply chain agreements following Jensen Huang's departure, Tesla and SpaceX CEO Elon Musk has warned, pointing to the personal nature of several business arrangements made during the former chief executive's tenure.Musk said Huang's ability to build and maintain relationships played an important role in securing deals for the chipmaker, with some agreements resting on personal assurances rather than written contracts.Taking to X on Saturday, Musk said, "Jensen drove supply chain brilliantly at Nvidia, but many of those deals were a handshake with Jensen, not a written contract."He further cautioned that Huang's absence could affect these arrangements.

"Without Jensen, at least some of those critical deals will be lost," he added.Musk's comments also come amid efforts to bring Huang back to the top job. On Friday, he publicly supported a petition seeking the former CEO's reinstatement. "A petition is underway to reinstate Jensen and I’m signing it too," Musk said in a post on X.His support for Huang had also been evident earlier when a social media user suggested that Musk hire the Nvidia co-founder.

Responding to the suggestion, Musk said, "That would be an honor."Huang stepped down as Nvidia's president and chief executive officer amid growing scrutiny over reports of his alleged extramarital relationships.The New York Times reported that Huang allegedly had a relationship with Nvidia Vice President of Healthcare Kimberly Powell, who reports to him. The newspaper based its report on accounts from five people who had worked at the company.The Wall Street Journal separately reported on Huang's alleged relationship with Alice Huang, a Chinese businesswoman suspected by some US intelligence officials of having links to Chinese intelligence services.After Huang's resignation, Nvidia appointed its chief financial officer Colette Kress as interim CEO as it begins the search for a permanent successor.

Huang co-founded Nvidia in 1993 and remained at its helm for more than three decades.

During this period, he oversaw the company's growth into one of the world's leading suppliers of artificial intelligence chips.Musk's warning centres on the business relationships established during Huang's leadership, suggesting that his departure could have consequences beyond the change at the top. The Tesla CEO has specifically pointed to supply chain agreements that were built on his personal assurances rather than formal written commitments.