Jensen Huang has resigned as the chief executive of Nvidia, the artificial intelligence powerhouse he co-founded, according to a company announcement. His departure follows allegations of two extramarital affairs, including one with a woman purportedly accused of espionage for China.
In the wake of Huang’s resignation, Colette Kress, the company’s chief financial officer, has been appointed as the interim CEO while Nvidia’s board searches for a permanent successor. Huang’s resignation marks the end of a 33-year tenure at the company.
Nvidia did not specify reasons for Huang’s departure, but the announcement has caused a significant drop in the company’s shares, which fell over 10 percent in premarket trading on Thursday. Nvidia’s stock was already down approximately 25 percent from its peak in early October prior to the resignation announcement.
The allegations against Huang have prompted a wave of scrutiny, as the board launched an investigation into claims suggesting he might have been targeted by foreign intelligence efforts. Specifically, U.S. intelligence agencies circulated a memo alleging that Alice Huang, a senior executive with whom he reportedly had an affair, was an asset for China’s Ministry of State Security. This claim has been denied by Beijing.
In addition to the affair with Alice Huang, reports have surfaced detailing a second extramarital relationship with Kimberly Powell, Nvidia’s vice president of health care, raising further concerns. The New York Times reported that the two were seen displaying affection during a conference. Nvidia’s code of conduct emphasizes the importance of avoiding conflicts of interest, highlighting the potential violation of its policies by such relationships.
Following Huang’s resignation, the company has announced that Harvey Jones, former CEO of chip design software firm Synopsys, will take the role of chair of the board, making history as the first individual to hold that position for the company. In a statement, Jones expressed confidence in Kress and the leadership team to continue the company’s operations and product roadmap uninterrupted.
Huang had been a significant figure in the rise of artificial intelligence, and his exit comes at a pivotal time for Nvidia as it navigates challenges in the competitive tech landscape. Nvidia, founded in 1993, specializes in the design of graphics processing units crucial for AI systems, with most of its processors manufactured by Taiwanese company TSMC. The company has scheduled to release its quarterly results on November 17.
