Elon Musk warns Nvidia could lose major business deals without Jensen Huang

WASHINGTON, DC: Elon Musk believes Nvidia could be facing a much bigger challenge following Jensen Huang's sudden departure than simply finding a replacement to take over as chief executive.

On Saturday, November 14, Musk explained why he thinks the chipmaker could find it difficult to hold on to some of its most important business relationships, drawing on his own dealings with Huang to argue why the veteran executive should return to the company.

Elon Musk flags Nvidia deal risks

Musk took to X to argue that Huang's importance to Nvidia went far beyond his role as CEO.

He credited the former chief with personally handling crucial supply-chain relationships, warning that some of the company's key agreements could fall apart now that he was no longer there.

"Jensen drove supply chain brilliantly at Nvidia, but many of those deals were a handshake with Jensen, not a written contract," Musk wrote.

He warned that without Huang, "at least some of those critical deals will be lost."

Musk also brought up his own experience of working with Huang, saying that the Nvidia chief had never let him down when it came to securing computing power or getting components delivered faster.

He recalled asking Huang to speed up supplies and said the executive always followed through on his word.

"If Jensen gave me his word about compute delivery or I asked for components to be accelerated, he always came through," Musk wrote.

According to him, the purchase orders and paperwork could follow later, because Huang's verbal commitment was enough to give him confidence that the arrangements would be honored.

Musk had already made his support for Huang's return public on Friday, when he backed a petition calling for the former CEO to be reinstated.

"A petition is underway to reinstate Jensen and I'm signing it too," he wrote.

He had also responded to an X user's suggestion that Huang should be hired, saying it would be "an honor."

Nvidia faces leadership test

Huang's departure brings an end to a leadership run that began when he co-founded Nvidia in 1993.

Over the next three decades, he steered the company through a dramatic shift, taking it from a business best known for graphics cards used in video games to one of the biggest names in the artificial intelligence industry.

Nvidia's processors are now central to the systems used to develop and run AI models.

Building that position involved more than producing increasingly powerful chips.

The company needed a steady supply of components, access to manufacturing facilities and reliable partners who could keep up with the fast-growing demand for AI hardware.

Huang was personally involved in many of these business relationships, a role that Musk has now highlighted in his warning about Nvidia's future.

On November 12, Nvidia announced that Huang had stepped down as president, CEO and a member of the board, with the resignation taking effect immediately.

The company named Chief Financial Officer Colette Kress as interim CEO as directors begin the search for a permanent successor.

His exit came as reports about his alleged extramarital relationships attracted attention, including claims involving a Chinese businesswoman suspected of having connections to Chinese intelligence.

Those alleged links have not been established.