The short version
- Jensen Huang has resigned as CEO of Nvidia effective immediately after reports surfaced regarding his relationships with an alleged Chinese intelligence operative and two company employees.
- Colette Kress, the long-serving chief financial officer, will serve as interim CEO while the board searches for a permanent successor from both internal and external candidates.
- Nvidia shares fell significantly on the news, wiping billions off the company's market capitalization, though broader market indices showed limited contagion effects.
Jensen Huang has stepped down as chief executive officer of Nvidia, ending his three-decade tenure at the semiconductor giant he co-founded in 1993. The resignation, announced on Thursday and effective immediately, follows a week of intensifying scrutiny over Huang’s personal conduct and potential national security risks. Reports indicated that Huang had engaged in extramarital affairs with multiple individuals, including a woman suspected by U.S. intelligence agencies of acting as a spy for China, as well as at least two Nvidia employees who reported directly to him.
Nvidia has appointed Colette Kress, the company’s chief financial officer and executive vice president since 2013, as interim CEO. Kress, who previously held leadership roles at Cisco, Microsoft, and Texas Instruments, stated in a public message that she is committed to building upon the foundation Huang established over the last 33 years. She emphasized that the company’s strength has always derived from its workforce, signaling an attempt to stabilize internal morale during this transition period.
The board of directors also announced the appointment of Harvey C. Jones as Nvidia’s first-ever chairman. Jones, a technology investor and entrepreneur, will oversee the search for a permanent chief executive. The board stated it is considering both internal and external candidates for the role. Potential successors mentioned in financial circles include Tim Cook, former Apple CEO; Lisa Su, CEO of AMD; and Rene Haas, CEO of Arm Holdings. Internal contenders include Kress and Ian Buck, who manages Nvidia’s AI hardware and software products.
The catalyst for Huang’s departure was a convergence of personal scandal and geopolitical concern. U.S. intelligence agencies had identified a close relationship between Huang and Alice Huang, a Singapore-based businesswoman and former executive at Megaspeed International. Authorities suspect she provided information to Beijing, although Chinese officials deny these allegations. Last year, Singaporean authorities questioned Alice Huang and confiscated her passport during an investigation into Megaspeed, concluding there was insufficient evidence of criminal activity but barring her from returning due to suspected misinformation regarding her role.
Compounding the pressure on Huang were reports of separate affairs with Nvidia employees. One involved Kimberly Powell, a vice president in healthcare, who was reportedly seen being affectionate with Huang at a company conference. Another alleged relationship with an unnamed employee emerged later in the week. These revelations intensified calls for his removal, particularly given the direct reporting lines and the potential for conflicts of interest or compromised corporate governance.
Nvidia’s initial response to the intelligence concerns was cautious. The company launched an internal review and hired the law firm Wachtell, Lipton, Rosen & Katz to conduct an independent investigation. Initially, Nvidia maintained that Huang would remain in his post while inquiries proceeded, stating there was no reason to believe national security or corporate secrets had been compromised. However, as scrutiny mounted late Wednesday, the board convened to discuss Huang’s future, leading to his resignation announcement on Thursday.
The financial markets reacted sharply to the news. Nvidia shares plunged approximately 13% at the open of trading on Thursday, wiping more than $180 billion off the company’s market value in a single day. By the close, shares had recovered slightly but remained down 4.3%, reflecting a weekly loss of around $490 billion. Despite the volatility in Nvidia’s stock, broader market indices such as the S&P 500 and Nasdaq showed limited fallout, suggesting investors view the leadership change as contained to the specific company rather than a systemic risk to the artificial intelligence sector.
Political reactions were mixed. President Donald Trump, who had previously defended Huang as an honorable figure, quickly pivoted to endorsing Tim Cook as a potential replacement, posting on social media that a legend should replace a legend. Meanwhile, lawmakers from both parties are calling for further investigations into the circumstances surrounding Huang’s relationships and any potential breaches of export control laws. The FBI is reportedly looking into the affair with Alice Huang, though the status of that probe remains unclear.
Huang’s exit marks a significant shift in Silicon Valley leadership at a critical juncture in the global AI race. As the face of Nvidia’s dominance in high-end chips essential for artificial intelligence development, his departure removes a central figure from the industry. Huang owned more than 870 million shares, making him one of the wealthiest individuals globally before his resignation. The company now faces the challenge of maintaining its technological edge and market confidence while navigating the aftermath of this tumultuous chapter.
Looking ahead, Nvidia must balance operational continuity with thorough oversight. The interim leadership under Kress will need to address internal culture concerns raised by the reported affairs with subordinates while ensuring compliance with international trade regulations. The appointment of a permanent CEO will likely be closely watched by investors and competitors alike, as the company seeks to reassure stakeholders that its strategic direction remains secure despite the sudden loss of its founder.
Sources behind this briefing
Go to the original reporting
- PBS NewsHour↗What we know after Jensen Huang's resignation as Nvidia's CEO
- The Guardian US↗Jensen Huang resigns as Nvidia CEO after alleged affairs
- The Guardian Business↗Nvidia turmoil continues as Jensen Huang resigns over affairs scandal and company appoints interim CEO – as it happened
- BBC Business↗Jensen Huang has resigned, what's next for Nvidia?
