Elon Musk has warned that Nvidia could lose major business deals following the departure of CEO Jensen Huang. He believes the company’s success depends partly on the strong relationships Huang has built with customers and business partners.
In a post on X on November 14, Musk said several important Nvidia deals relied on personal trust rather than formal contracts. He suggested that Huang’s departure could put these business agreements at risk.
Musk also praised Huang for managing Nvidia’s supply chain and maintaining strong industry relationships. He highlighted how personal connections have helped Nvidia secure important partnerships and business agreements. His comments raise questions about whether Nvidia can maintain these relationships under new leadership.
Jensen Huang’s Departure Creates Uncertainty at Nvidia
Jensen Huang’s departure marks a major leadership change for Nvidia, which has become one of the world’s most valuable technology companies. Huang co-founded Nvidia in 1993 and led the company for more than three decades.
Under his leadership, Nvidia evolved from a graphics chip maker into a major supplier of artificial intelligence processors. Its chips now support data centres, cloud computing and advanced AI systems worldwide.
Following his departure, Nvidia CFO Colette Kress took over as interim CEO while the board searched for a permanent replacement. Longtime board member Harvey Jones also assumed the role of chairman.
Huang’s exit has raised questions about Nvidia’s future leadership and business strategy. His strong relationships with major customers and technology companies could also affect the company’s ability to maintain important partnerships.
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Elon Musk Had Previously Expressed His Interest in Hiring Jensen Huang
Elon Musk had previously shown interest in hiring Jensen Huang before Nvidia announced the leadership change. His comments have gained attention following reports of Huang’s departure from the company.
On November 11, Musk responded to an X post suggesting he hire Huang. He replied, “That would be an honor,” showing his interest in working with the Nvidia co-founder.
Musk’s interest comes as his companies, including Tesla and SpaceX, continue investing in artificial intelligence and computing technology. Tesla is developing its own AI chips to support autonomous driving, robotics and other advanced applications.
Huang’s experience in chip manufacturing, AI hardware and supply chain management could benefit these projects. However, Musk has not announced any formal job offer or confirmed a potential role for Huang.
Nvidia Faces More Challenges in the Chinese AI Chip Market
Jensen Huang’s departure comes as Nvidia faces growing challenges in China due to US restrictions on advanced AI chip exports. These restrictions have limited the company’s ability to sell its most advanced processors to Chinese customers.
A Reuters investigation published on November 13 identified more than $3 billion worth of Chinese computing projects involving restricted Nvidia processors. The investigation reviewed over 150 procurement notices, investment plans, construction contracts and company disclosures.
The identified projects and equipment agreements were worth more than 23 billion yuan, approximately $3.2 billion. This figure includes planned investments, signed contracts and completed installations across China’s computing infrastructure. It covers data centre buildings, power systems and related facilities, rather than Nvidia chips alone.
This shows that Chinese companies continue to seek Nvidia hardware despite strict US semiconductor export restrictions. Huang’s departure could create additional challenges as US lawmakers consider tighter controls on technology exports to China.
He had previously spoken against excessive restrictions that could limit Nvidia’s access to the Chinese market. His exit could also reduce Nvidia’s influence in discussions about future US export policies.
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Nvidia’s Next Challenge Is Protecting Its Major Business Partnerships
Nvidia now faces the challenge of protecting its business relationships and market position during this leadership transition. The company must maintain customer confidence and reassure investors about its future business plans.
Musk’s warning points to a possible risk beyond Nvidia’s financial performance and market value. Many important business relationships have developed over several years, with Huang playing a major role in building them.
However, it is still unclear whether Huang’s departure will lead to lost contracts or business partnerships. Nvidia’s strong position in the AI chip market, established customer base and advanced technology could help protect its existing deals.
The coming months will reveal whether Nvidia can maintain its key partnerships without Huang’s leadership. Its ability to retain customer trust could play an important role in shaping the company’s future growth.
