Nvidia CEO Jensen Huang resigns amid affair scandal in shock move

Dubai: Nvidia said on Thursday that Jensen Huang had resigned as president, chief executive officer and board member with immediate effect, ending his 33-year leadership of the AI chip giant he co-founded following revelations of two extramarital affairs, including one involving a woman accused of spying for China.

The departure follows reports that Huang faced an investigation over the alleged espionage connection. China has denied the spying claims. Nvidia's announcement did not specify a reason for his resignation or establish any wrongdoing by Huang.

Chief Financial Officer Colette Kress has been appointed interim CEO and will retain her finance responsibilities while Nvidia's board searches for a permanent replacement. The company said it would consider internal and external candidates.

Huang co-founded Nvidia in 1993 and built it into one of the world's most valuable technology companies, supplying advanced chips used to develop and run artificial intelligence systems.

The announcement follows weeks of uncertainty over Huang's position, with Nvidia shares falling around 25% from their early October peak amid reports surrounding his personal relationships and concerns over leadership succession.

The company has also appointed Harvey C. Jones as chair of its board, marking the creation of a separate board leadership position.

“Colette has helped lead NVIDIA through a period of extraordinary growth and has a deep understanding of our business, customers, operations and financial position,” Jones said.

He added that the board expected operations, customer commitments and product development plans to continue without interruption.

Kress joined Nvidia in September 2013 after holding senior finance positions at Cisco and Microsoft. “We will continue advancing the work that has made NVIDIA a leader in accelerated computing and AI, and execute on the opportunities ahead,” she said.

The leadership transition comes as Nvidia faces questions about its ability to maintain its position in the rapidly expanding AI chip market.

Investors are watching whether the change affects product launches, customer orders and the company's relationships with major technology companies investing heavily in AI infrastructure.

Stephen Innes of SPI Asset Management said investors had placed considerable value on Huang's leadership alongside Nvidia's technology.

“The market has spent years assigning Nvidia a premium for exceptional execution,” Innes said. “It may now have to calculate how much of that premium was attached to one individual.”

Nvidia has not announced a timetable for appointing a permanent chief executive.