Exclusive: Banned Nvidia Chips Scoop, Global Microsoft Outage, Ukraine Talks Progress

SPEAKER_1 (0:02)

Bloomberg Audio Studios, Podcasts, Radio, News.

Caroline Hepker (0:10)

This is the Bloomberg Daybreak Europe Podcast. Good morning from London. It's Friday the 13th of November. I'm Caroline Hepker.

Ben Boulos (0:16)

And I'm Ben Boulos. Coming up today, Nvidia's board hunts for a new CEO as Bloomberg learns a company founded by Alice Huang got banned Nvidia chips in China.

Caroline Hepker (0:25)

I'm a piece of sh dot dot an exclusive look inside Jensen Huang's last hours as the boss of Nvidia.

Ben Boulos (0:33)

Plus, Ukrainian president Volodymyr Zelenskyy says progress had been made during a meeting with US envoys in Ireland. We have the latest.

Caroline Hepker (0:41)

Let's start with a roundup of our top stories.

Ben Boulos (0:43)

Nvidia is trying to steady itself after the dramatic ouster of Jensen Huang, the only CEO the company's ever known. But his departure is triggering wider fallout from a US investigation to growing scrutiny in Washington. Bloomberg can now report that a Chinese company founded by Alice Huang procured smuggled AI chips. Bloomberg's James Walcock has more.

James Walcock (1:06)

Documents reviewed by Bloomberg tied Jensen Huang's former lover and suspected Chinese spy to the firm Shanghai Longtang Intelligent Computing. That company has managed to obtain Nvidia chips, which are blocked from being sold to China, according to its filings to China's government.

It's the most explicit evidence yet that an expansive network of Chinese companies with Alice Huang at the center managed to get its hands on smuggled Nvidia hardware. The filings don't say whether Alice Huang was personally involved in obtaining the chips, Megaspeed has denied chip smuggling allegations and Bloomberg has been unable to reach her for comment. In London, James Walcock, Bloomberg Radio.

Caroline Hepker (1:44)

Well, scrutiny of Alice Huang appears to be widening. Sources tell Bloomberg the US Justice Department is probing whether entities linked to her were involved in efforts to smuggle Super Micro products into China. Her former company, Megaspeed, is already under investigation over suspected chip smuggling. It denies wrongdoing. Super Micro says that Megaspeed has never been a customer and that it has fully cooperated with authorities.

Ben Boulos (2:13)

Well, the fall of Jensen Huang has removed the industry's most prominent opponent of US chip controls. And lawmakers in America are now questioning whether US officials did enough to prevent advanced Nvidia chips reaching China. Illinois Democrat, Raja Krishnamurthy, says the system clearly wasn't working.

Raja Krishnamurthy (2:31)

So this is a freaking disaster at this point. And it deserves tremendous scrutiny, not only by obviously Nvidia's board, but by the intelligence community and the US government as well.

Ben Boulos (2:45)

Raja Krishnamurthy, who's Illinois' representative in the House speaking there, Commerce Secretary Howard Lutnick is facing scrutiny over his department's handling of chip export controls. He has agreed to testify before the Senate Banking Committee as lawmakers demand answers over possible enforcement gaps.

Caroline Hepker (3:02)

Nvidia is now turning to longtime CFO Colette Kress for stability while it searches for a permanent replacement. Here is Bloomberg Technologies' Ed Ludlow on the board search.

Ed Ludlow (3:14)

Nvidia did not give a reason specifically in its board statement for Huang's resignation. Huang is not quoted in the announcement. CFO Colette Kress becomes CEO on an interim basis while Nvidia's board conducts a pretty wide search of both internal and external candidates to lead this company that has become the dominant player in AI chips around the world. The question everyone closed the day with is what is Nvidia without Jensen Huang?

Caroline Hepker (3:41)

Ed Ludlow there pointing to the fact that replacing Jensen Huang will be difficult after he combined the roles of technologists, executive and public face of the company, even the industry. Nvidia's search for a permanent CEO is expected to consider AMD's Lisa Su and ARMS Renee Haas.

Ben Boulos (3:59)

Well, Huang's exit comes after weeks spent denying the allegations of infidelity. After he resigned Reuters reported the Nvidia CEO had an intimate relationship with a third woman. Bloomberg's Chris Pitt has an exclusive look inside Jensen Huang's dramatic final days at Nvidia.

Chris Pitt (4:16)

Sources tell Bloomberg that Jensen Huang looked broken and shattered in his final days running Nvidia. Insiders say he called himself a piece of sh...

and began saying, whatever and I don't care. It was a startling change for a CEO famous for his legendary energy and attention to detail. Just weeks earlier, Huang was a global face of AI with close ties to the White House and global world leaders.

But by the end, people in the room saw a man whose usual take charge demeanor had disappeared. In their eyes, they say, he had simply given up. In London, Chris Pitt, Bloomberg Radio.