Nvidia co-founder and CEO Jensen Huang has resigned effective immediately following the disclosure of two affairs, a move that triggered a market value loss of hundreds of billions of dollars for the chipmaker on Thursday.
The departure marks a sudden end to his 33-year tenure at the helm of the company.
The company confirmed that Chief Financial Officer Colette Kress will serve as interim CEO while the board initiates a search for a permanent successor.
Kress, who possesses extensive knowledge of the company’s strategy and cash flows, is expected to face significant scrutiny during the upcoming quarterly earnings presentation scheduled for next week. The board of directors expressed gratitude for Huang’s “invaluable contributions” to the company and the sector, describing his influence as profound.
According to reporting by The New York Times, American intelligence officials have investigated whether the relationship was used to circumvent federal export restrictions on advanced artificial intelligence chips destined for China. While intelligence agencies have leveled these accusations, no public evidence has been presented.
The Chinese government has denied involvement, with a Ministry of Foreign Affairs spokesperson dismissing the claims as “unfounded speculation” and an attempt to smear China as a pretext for a technological blockade.
The crisis reached a tipping point when it was revealed that Huang had also engaged in a relationship with a direct subordinate at Nvidia. This second affair violated the company’s internal code of conduct.
The board of directors held an emergency meeting to evaluate the sustainability of the CEO’s position. Despite support from figures such as Donald Trump and Elon Musk, the revelation of the second relationship made Huang’s position untenable.
Investors have responded to the volatility by launching a collective lawsuit against the company, alleging that leadership withheld information regarding security risks and business conduct. The total evaporation of market value since the scandal broke now exceeds hundreds of billions of dollars, according to various reports.
As the company searches for a permanent successor, speculation regarding potential candidates has emerged. President Trump, who maintained a close relationship with Huang, publicly suggested Tim Cook, who until recently was CEO of Apple, as a replacement, stating, “A legend must replace a legend.” Within Nvidia, potential internal candidates include Ian Buck, vice president of the datacenter division and founder of the CUDA software platform, though his lack of experience as a general manager is noted.
Some have also speculated about the potential candidacy of Huang’s daughter, currently a Senior Director of Product Marketing, though shareholders may resist such a transition given the current climate.
The fallout extends beyond the executive suite. These investigations center on the intelligence concerns surrounding Alice Huang. While there are currently no indications of criminal prosecution against Nvidia or Jensen Huang, the regulatory pressure remains high. The company faces uncertainty as the market awaits Kress's first earnings presentation to determine the full extent of the financial damage.
Earlier coverage: Nvidia Shares Plunge as Jensen Huang Resigns, Reports Say