Silicon Valley Pushes Back on Jensen Huang’s Exit

After Nvidia’s board removed CEO Jensen Huang, Silicon Valley venture investors and tech founders publicly objected. They said the departure of Huang, who co-founded Nvidia in 1993 and led it for 33 years, could harm both the company and the U.S. technology industry. Bloomberg reported their social media criticism on the 12th, local time.

Martin Casado, a general partner at Andreessen Horowitz, called the move “a terrible decision for America and the Western world” on X. Deel CEO Alex Bouaziz called it a “mistake,” while Solana Labs co-founder Raj Gokal described it as “a once-in-a-generation blunder.” Runway co-CEO Cristóbal Valenzuela and Conviction founder Sarah Guo also viewed Huang’s departure as a major loss. Casado said it would be an honor if Huang joined Andreessen Horowitz; Elon Musk made a similar remark the day before the resignation announcement.

Bloomberg said the backlash reflected Huang’s influence in the AI industry. Nvidia supplies graphics processing units (GPUs) used in AI development and has invested in AI startups, including some of its customers. Huang met with governments and technology company executives, leading discussions on AI infrastructure investment and semiconductor supply. Sequoia Capital’s Shaun Maguire said Nvidia had expanded investments in open source, photonics (technology that uses light), and robotics, and that these fields would feel Huang’s absence.

Huang’s departure also raised concerns that it could affect Nvidia’s planned $13 billion acquisition talks for open-source AI platform Hugging Face. Hugging Face CEO Clément Delangue said he regretted the situation but would continue to fight for open-source AI. The report did not say that the acquisition talks had been halted.

Industry figures cited Apple’s Steve Jobs and OpenAI’s Sam Altman as examples of conflicts between founders and boards. Apple’s board pushed Jobs out of management in 1985, then brought him back in 1997. OpenAI dismissed Altman in November 2023 and reinstated him five days later amid opposition from employees and investors. Some investors saw Huang’s departure as a management risk when founders lose control of their boards. Elad Gil argued that boards should be reshaped when circumstances are favorable, and Travis Kalanick agreed.

Former Twitter CEO Dick Costolo predicted that Nvidia might call Huang back if the company missed earnings expectations for one or two quarters in three to four years. This was an individual industry figure’s prediction; the report gave no evidence that Nvidia was considering Huang’s return. Huang stepped down following reports related to his personal life and a board decision. Nvidia appointed CFO Colette Kress interim CEO and is looking for a permanent successor.

After Nvidia’s board removed CEO Jensen Huang, Silicon Valley venture investors and tech founders publicly objected. They said the departure of Huang, who co-founded Nvidia in 1993 and led it for 33 years, could harm both the company and the U.S. technology industry. Bloomberg reported their social media criticism on the 12th, local time.

Martin Casado, a general partner at Andreessen Horowitz, called the move “a terrible decision for America and the Western world” on X. Deel CEO Alex Bouaziz called it a “mistake,” while Solana Labs co-founder Raj Gokal described it as “a once-in-a-generation blunder.” Runway co-CEO Cristóbal Valenzuela and Conviction founder Sarah Guo also viewed Huang’s departure as a major loss. Casado said it would be an honor if Huang joined Andreessen Horowitz; Elon Musk made a similar remark the day before the resignation announcement.

Bloomberg said the backlash reflected Huang’s influence in the AI industry. Nvidia supplies graphics processing units (GPUs) used in AI development and has invested in AI startups, including some of its customers. Huang met with governments and technology company executives, leading discussions on AI infrastructure investment and semiconductor supply. Sequoia Capital’s Shaun Maguire said Nvidia had expanded investments in open source, photonics (technology that uses light), and robotics, and that these fields would feel Huang’s absence.

Huang’s departure also raised concerns that it could affect Nvidia’s planned $13 billion acquisition talks for open-source AI platform Hugging Face. Hugging Face CEO Clément Delangue said he regretted the situation but would continue to fight for open-source AI. The report did not say that the acquisition talks had been halted.

Industry figures cited Apple’s Steve Jobs and OpenAI’s Sam Altman as examples of conflicts between founders and boards. Apple’s board pushed Jobs out of management in 1985, then brought him back in 1997. OpenAI dismissed Altman in November 2023 and reinstated him five days later amid opposition from employees and investors. Some investors saw Huang’s departure as a management risk when founders lose control of their boards. Elad Gil argued that boards should be reshaped when circumstances are favorable, and Travis Kalanick agreed.

Former Twitter CEO Dick Costolo predicted that Nvidia might call Huang back if the company missed earnings expectations for one or two quarters in three to four years. This was an individual industry figure’s prediction; the report gave no evidence that Nvidia was considering Huang’s return. Huang stepped down following reports related to his personal life and a board decision. Nvidia appointed CFO Colette Kress interim CEO and is looking for a permanent successor.