Nvidia CEO Jensen Huang resigns amid affair scandal; Colette Kress named interim chief

Nvidia co-founder Jensen Huang resigned as president, chief executive officer and board member with immediate effect on Thursday, ending his 33-year leadership of the artificial intelligence chipmaking giant amid a widening controversy involving allegations of extramarital affairs and concerns over possible links to Chinese intelligence.

The company's board appointed executive vice-president and chief financial officer Colette Kress as interim CEO. She will continue to oversee Nvidia's finances while leading the company until a permanent successor is appointed.

Nvidia also named Harvey C Jones as its first-ever board chairman, marking a major restructuring of the company's leadership at a time when its advanced chips have become central to the global artificial intelligence industry.

𝐇𝐮𝐚𝐧𝐠 𝐞𝐱𝐢𝐭𝐬 𝐚𝐦𝐢𝐝 𝐬𝐜𝐚𝐧𝐝𝐚𝐥

Huang's departure followed reports that he had been involved in two extramarital relationships, one allegedly involving Alice Huang, a former executive at Singapore-based cloud computing company Megaspeed.

According to media reports, American intelligence officials suspect Alice Huang of having links to Chinese intelligence agencies. The allegations have raised questions about whether sensitive corporate information or US national security interests could have been compromised.

However, the allegations concerning her suspected intelligence connections remain unproven, and no public finding has established that Jensen Huang disclosed classified information or Nvidia's confidential technology.

Reports also emerged of a second relationship involving Kimberly Powell, an Nvidia executive who reported to Huang.

Earlier this week, Huang acknowledged being unfaithful to his wife in a communication to employees and accepted responsibility for his personal conduct.

The disclosures intensified scrutiny of Nvidia's corporate governance and prompted its board to initiate an independent investigation.

𝐈𝐧𝐯𝐞𝐬𝐭𝐢𝐠𝐚𝐭𝐢𝐨𝐧 𝐫𝐚𝐢𝐬𝐞𝐬 𝐜𝐨𝐧𝐜𝐞𝐫𝐧𝐬

The controversy has attracted attention in Washington because of Nvidia's strategic position in the global semiconductor industry and ongoing US restrictions on exporting advanced artificial intelligence chips to China.

American authorities have reportedly been examining possible links between the suspected intelligence activities and the movement of restricted semiconductor technology.

Nvidia's relationship with Megaspeed has also come under scrutiny over concerns about the potential diversion of advanced chips to Chinese companies.

Both Nvidia and Megaspeed have denied wrongdoing in connection with the suspected chip shipments.

The company's board launched an independent investigation to examine whether Huang's relationships created risks involving confidential information or national security.

The inquiry is being conducted with external legal assistance, including former acting US attorney Joon H Kim and law firm Wachtell, Lipton, Rosen & Katz.

Nvidia's directors have said they have no reason at present to believe that national security or the company's trade secrets were compromised.

𝐊𝐫𝐞𝐬𝐬 𝐭𝐚𝐤𝐞𝐬 𝐜𝐡𝐚𝐫𝐠𝐞

Kress, who joined Nvidia in September 2013, has served as the company's chief financial officer for more than 13 years.

Before joining Nvidia, she spent nearly 25 years in senior financial positions at major technology companies, including Cisco and Microsoft.

As interim chief executive, she will oversee operations during the leadership transition while the board considers both internal and external candidates for the permanent position.

Jones, a former chief executive and executive chairman of Synopsys, will lead Nvidia's board as its first chairman.

The company expressed confidence in Kress and its existing leadership team, indicating that business operations, customer commitments and technology development would continue without interruption.

The appointment comes as Nvidia prepares to announce its quarterly financial results on November 17, an event expected to draw considerable investor attention following the leadership upheaval.

𝐌𝐚𝐫𝐤𝐞𝐭𝐬 𝐫𝐞𝐚𝐜𝐭 𝐬𝐡𝐚𝐫𝐩𝐥𝐲

Huang's departure has unsettled investors because of his central role in building Nvidia into one of the world's most valuable technology companies.

Nvidia shares fell more than 10 per cent in premarket trading on Thursday as markets assessed the implications of losing the executive most closely associated with the company's rise.

The 63-year-old entrepreneur co-founded Nvidia in 1993 and transformed it from a graphics processor manufacturer into a dominant supplier of chips powering artificial intelligence systems.

Under his leadership, Nvidia became a major beneficiary of the global AI boom, supplying advanced processors to technology companies developing data centres and large-scale AI models.

Huang also played an influential role in debates surrounding US semiconductor export restrictions and technological competition with China.

His departure leaves Nvidia facing a significant leadership transition at a critical moment for the industry.

The company's board has begun searching for a permanent chief executive, while investors will closely watch whether the new leadership can maintain Nvidia's technological advantage, customer relationships and growth trajectory.