'Without Jensen Huang, Handshake Deals Will Be Lost': Musk Warns Nvidia

Tesla and SpaceX CEO Elon Musk has raised concerns about what Jensen Huang's departure could mean for Nvidia, warning that the chipmaker may lose some of its most important supply chain partnerships.

According to Musk, several of these arrangements depended heavily on Huang's personal relationships with suppliers rather than formal contracts. His exit, he suggested, could put those deals at risk.

"Jensen drove supply chain brilliantly at Nvidia, but many of those deals were a handshake with Jensen, not a written contract," Musk said in a post on X.

"Without Jensen, at least some of those critical deals will be lost," he added.

The warning comes at a crucial time for Nvidia, which has become one of the world's most important companies in the artificial intelligence industry. Its chips power AI systems across the globe, making stable relationships with suppliers essential to its business.

Musk Wants Jensen Huang Back

Musk has also made his support for Huang's return to Nvidia clear. On Friday, he backed a petition calling for the co-founder's reinstatement as CEO.

"A petition is underway to reinstate Jensen and I'm signing it too," Musk said on X.

He had earlier indicated that he would be willing to work with Huang after a social media user suggested that he hire the former Nvidia chief.

"That would be an honour," Musk replied.

His latest comments suggest that Huang's departure could have consequences beyond the company's leadership structure, particularly if Nvidia struggles to maintain business relationships built over decades.

Why Did Huang Leave Nvidia?

Huang stepped down as Nvidia's president and CEO amid reports about his alleged personal relationships, which brought increased scrutiny around his leadership.

A report by The New York Times alleged that Huang had a relationship with Nvidia Vice President of Healthcare Kimberly Powell, who reports to him. The newspaper cited five people who had worked at the company.

In a separate report, The Wall Street Journal raised allegations about Huang's relationship with Alice Huang, a Chinese businesswoman suspected by some US intelligence officials of having links to Chinese intelligence services.

Nvidia has appointed Chief Financial Officer Colette Kress as interim CEO while it looks for a permanent replacement.

Huang's Three Decades At Nvidia

Huang co-founded Nvidia in 1993 and remained at the helm for more than 30 years. During this period, he transformed the company from a graphics chipmaker into a global leader in AI hardware.

His long association with the company also helped him build relationships across its business network, including with suppliers and industry partners.

Musk's warning now puts the spotlight on a question Nvidia will have to confront: whether those relationships can survive without the person who built them. If some of its key supply arrangements were based on personal trust rather than binding contracts, finding a successor may be only one part of the challenge.