Jensen Huang has resigned as chief executive of Nvidia after reports of extramarital affairs with an alleged Chinese spy and a company employee.
He will be replaced on an interim basis by Nvidia’s chief financial officer, Colette Kress, until a full-time successor is named.
Shares in Nvidia plunged by ۱۳% when Wall Street opened, after Huang’s departure was announced. After a partial rebound, they were down ۷% in morning trading, wiping more than $۳۲۰bn (£۲۴۲bn) off Nvidia’s value on the day and more than $۶۰۰bn for the week – valuing the company at about $۳.۹tn.
The statement from Nvidia’s board of directors confirming Huang’s departure did not mention the spying scandal and personal conduct revelations that have enveloped the company, instead paying tribute to Huang’s “profound” contributions to the company he co-founded.
“Jensen’s contributions to Nvidia are profound. Nvidia is one of the most consequential technology companies in the world. The board and the company thank Jensen for his immeasurable contributions to the company and the industry,” the statement said.
The statement said Huang had resigned as CEO, president and Nvidia board member “effective immediately.”
The chipmaker’s board earlier this week appointed leading law firm Wachtell, Lipton, Rosen & Katz to conduct a “thorough and independent” investigation into the relationship with Alice Huang, an Nvidia customer and Chinese citizen who is no relation to the Nvidia boss. Nvidia had previously denied anything unusual about the relationship, but that changed on Sunday when Huang admitted he had been unfaithful to his wife – without referring to Alice Huang directly.
The firm had directed Jensen Huang to continue to helm Nvidia as the investigation was ongoing.
However, late on Wednesday, the New York Times reported that Huang had a separate extramarital affair with a company employee named Kimberly Powell. She was Nvidia’s president of healthcare and was reportedly captured on video being affectionate with Huang at a hotel during a company conference in March.
Powell has been approached for comment.
The report added to the pressure on Huang as the board met late on Wednesday.
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Huang’s exit from the company he co-founded in ۱۹۹۳ removes a senior figure in Silicon Valley at a time when the AI arms race between the US and China is at an apex. Huang owns more than ۸۷۰m shares, or about ۳.۶% of the company and was worth $۱۴۵bn on Thursday morning, according to Bloomberg, making him the world’s ۱۳th richest person. Unlike many of his contemporaries at other leading tech companies, Huang has dozens of direct reports, an unusual management structure that emphasises his control over the company.
The entire artificial intelligence ecosphere relies on the company, which engineers advanced chips used to train AI models and power companies such as OpenAI and Anthropic. It is also one of the most valuable companies on Earth, with a market cap of more than $۴tn.
Huang has denied any knowledge that Alice Huang allegedly worked for the Chinese government. The pair were seen together around the world, dining in restaurants and attending meetings, over the past few years. Alice Huang is a businesswoman and head of the Singapore-based datacentre firm Megaspeed, who US intelligence services suspect of being a Chinese asset according to multiple reports.
On the same day that Hunag admitted having an affair, Nvidia’s board of directors announced the company was launching an investigation regarding reports that Huang was the target of a foreign intelligence effort.
Donald Trump has backed Jensen Huang, saying he had done “an incredible job” and is “an honorable guy”. Big tech industry players, including Elon Musk, have also thrown their support behind him.
