The Scoop: What Jensen Huang, Nvidia board say about CEO’s affair with Chinese spy

It sounds like something right out of an espionage novel: Jensen Huang, CEO of chipmaker Nvidia, has admitted he had an extramarital affair with a woman accused of being a Chinese spy. 

Now, a tawdry private scandal has become a matter of international security and economic concern. In an email sent to workers at Nvidia, Huang spent as much time apologizing to his wife and children (some of whom work at Nvidia) as to his colleagues. 

“To my wife and family: I love you. I know an apology cannot undo what I have done. I hope our family will heal and that, over time, I can earn back your trust,” he wrote, according to an email obtained by CNBC. His note also ends with a plea for understanding and privacy for his family. 

To his coworkers, Huang admitted “you deserve better from me.” He continued: “My responsibility is to serve you and be worthy of your trust. I have fallen short of that responsibility. I am fully committed to NVIDIA and will work to earn back your confidence.” 

In other words: I screwed up, but I’m not going anywhere. 

A memo from Nvidia’s board of directors struck a similar tone of recognizing Huang’s mistakes while wanting to keep him as leader. In announcing an independent investigation into Huang’s actions, the board asserted that “the Board has no reason to believe that either national security or NVIDIA secrets were compromised.” It also said, “The Board has confidence in Jensen and his leadership team.” 

Why it matters: Arguably the most important company to the AI revolution is facing a major geopolitical scandal. And yet all signals indicate its CEO might survive. 

One reason, according to the New York Times, is that “there is no obvious successor, or even high-profile internal candidate, to run his giant chip company.” Further compounding the complication is Huang’s status as the largest single shareholder in the company. 

That is why both Huang and the board are signaling that he is likely, given the facts known at this moment in time, that Huang will retain leadership. There is no one else who is seen as being able to step into such a consequential role at such a consequential moment. 

Yet that doesn’t mean the road ahead will be easy. In addition to the independent investigation, you can also expect Congressional inquiry from a feisty incoming Democratic legislature that will be embarrassing and damaging.  

Besides the statements issued, this communications moment highlights the importance of strong succession planning. While it’s a scandal in this case, the company would be in similarly dire straits if Huang was killed in an accident with no heir apparent. Communications can’t fully push this leadership function, but this is a good moment to start having those conversations. Just in case. 

The media is pivoting to video. Again. 

Remember in the mid-2010s when every news outlet suddenly started churning out videos based on views from Facebook? 

It’s happening again. Only this time, vertical video — primarily on TikTok and Instagram — is leading the way. 

A column from The Verge highlights the pressures pushing media in this direction: payouts directly from social networks as well as audiences that would rather watch than read. Outlets are turning their own reporters into stars and partnering with influencer networks to translate their news to audiences. 

Yet there remains one fundamental problem: “You can’t eat views.” How do these videos translate to subscriptions or other forms of revenue? That’s the fundamental question.  

But for PR pros the takeaway is clear: Get your experts camera ready and provide assets that can be used in vertical video. You can up your chances of getting picked up. 

Once Upon a Farm struggles to bounce back after multiple recalls 

“Consumer safety is our number one thing and we don’t mess around with it,” John Foraker, co-founder of organic child snack company Once Upon a Farm told the Wall Street Journal.  

The only problem? The company’s track record doesn’t bear that out. Once Upon a Farm has seen a steady stream of safety incidents, including pieces of foreign material in some food products and reports that its signature Tractor Wheel bars could pose a safety hazard. 

“In food manufacturing, there are issues that arise from time to time,” Foraker said. “You just have to work through them.” 

The problem is that this is a company built on feeding children wholesome food. “Stuff happens” is not what families want to hear when it comes to the safety of their children. This is doubly true of a company that built its reputation on organics and safer food. 

Communications alone can’t fix this situation. But the current plan sure isn’t helping. Concrete plans on how this is being fixed and how trust is being re-earned are needed. 

Some companies are turning to AI agents as CMOs 

At small startups, the CMO may be a complex web of AI agents. 

The Wall Street Journal reports that a growing number of small businesses are eliminating the CMO role entirely in favor of highly trained AI agents.  

Rather than hiring 10 humans, one company is now looking to hire just two to oversee the robots. At another, AI is just a stopgap until they can afford to hire a full-time staffer.  

Even the founders turning to this method admit it’s not perfect and requires lots of oversight and review. Robots get things wrong, suggest plans that are just not feasible and miss details.  

But what this does underscore is just how important it is that communicators and marketers continue to prove their value and creativity. The time to showcase that skillset is now.