Jensen Huang has resigned as chief executive of Nvidia, the world's leading AI chipmaker, following reports of extramarital affairs involving a businesswoman suspected of links to Chinese intelligence and a senior company employee.
Nvidia confirmed on November 12 that Huang had stepped down as CEO, president and board member with immediate effect. The company's chief financial officer, Colette Kress, has been appointed interim CEO until a permanent successor is selected.
The sudden departure of the 63-year-old executive, who co-founded Nvidia in 1993 and transformed it into one of the world's most valuable companies, has raised concerns about the future leadership of a business central to the global artificial intelligence boom.
Wall Street reacted sharply to Huang's exit. Nvidia shares plunged as much as 13% when trading opened on Thursday before recovering some losses. The stock was down around 7% during morning trading, erasing more than $320 billion from the company's market capitalisation.
The week's losses exceeded $600 billion, bringing Nvidia's valuation down to approximately $3.9 trillion.
The sell-off reflected investors' concerns about the departure of an executive closely associated with Nvidia's technology strategy, major customers and global expansion.
The controversy centres on Huang's reported relationship with Alice Huang, a Chinese businesswoman who heads Singapore-based data centre company Megaspeed.
According to media reports, US intelligence agencies suspect Alice Huang of having links to Chinese intelligence operations. The allegations have also raised questions about possible attempts to influence US restrictions on exports of advanced AI chips to China.
Jensen Huang has denied knowing that Alice Huang was allegedly working for the Chinese government. The allegations concerning her intelligence connections have not been publicly established as fact.
On November 8, Huang acknowledged in an internal communication that he had been unfaithful to his wife and accepted responsibility for his conduct.
Nvidia subsequently initiated an independent investigation into reports that Huang had been targeted by a foreign intelligence effort. The company said it had no reason to believe that national security or its confidential information had been compromised.
The controversy intensified after The New York Times reported another alleged relationship involving Kimberly Powell, Nvidia's president of healthcare.
According to the report, Powell and Huang were reportedly seen behaving affectionately at a hotel during a company conference in March.
The fresh allegations increased pressure on Nvidia's board, which had already appointed law firm Wachtell, Lipton, Rosen & Katz to conduct an independent investigation.
The board subsequently met to review Huang's position, culminating in his resignation. Nvidia's official announcement did not directly link his departure to the allegations. Instead, the board acknowledged his contributions to building the company into a major force in the global technology industry.
Colette Kress, who has served as Nvidia's chief financial officer since September 2013, will lead the company on an interim basis while continuing her responsibilities as CFO.
Nvidia's board has initiated a search for a permanent CEO and will consider both internal and external candidates. The company has also appointed Harvey C. Jones as its first independent board chair.
Huang's exit comes at a critical time for Nvidia, whose advanced processors are widely used to train and run artificial intelligence models.
Major technology companies, including OpenAI, Anthropic, Microsoft and Google, depend on Nvidia's hardware ecosystem for significant parts of their AI infrastructure.
Huang personally holds more than 870 million Nvidia shares, representing approximately 3.6% of the company. His wealth was estimated at around $145 billion on Thursday morning, according to Bloomberg.
His highly centralised leadership style, involving dozens of executives reporting directly to him, could make the transition particularly challenging.
The leadership change also comes as the US and China compete for dominance in advanced semiconductor technology and artificial intelligence.
Although US President Donald Trump and several prominent technology executives, including Elon Musk, had publicly supported Huang during the controversy, the unfolding allegations ultimately led to his departure.
For Nvidia, the immediate challenge is to restore investor confidence, ensure management continuity and protect its leadership in the rapidly expanding AI chip market.
