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Nvidia CEO Jensen Huang Resigns Amid Spy Scandal, Stock Tumbles
Jensen Huang stepped down as Nvidia's CEO on Thursday after revelations of an affair with a woman U.S. officials suspect is a Chinese spy, sending shares down 14% and raising national security concerns. CFO Colette Kress takes over as interim CEO while the board searches for a permanent replacement.
Jensen Huang, the longtime CEO of chipmaker Nvidia, resigned on Thursday following reports of extramarital affairs, including one with a woman U.S. officials believe is a Chinese spy. The departure of Huang, who co-founded the company in 1993 and built it into a trillion-dollar leader in artificial intelligence chips, sent Nvidia shares plunging 14% at the opening bell before recovering to a decline of about 4% by midday.
The scandal escalated after The New York Times reported that U.S. officials had concluded that Alice Huang, a former executive at Singapore-based Megaspeed International, was a Chinese spy recruited to influence Nvidia to make its most advanced chips more available in China. Jensen Huang acknowledged an affair but did not identify the woman. The two are not related.
Nvidia's board announced an investigation into the allegations on Sunday but initially expressed confidence in Huang's leadership. Pressure mounted late Wednesday after reports surfaced of another alleged affair, this time with an Nvidia employee who reported to him.
The company named Colette Kress, executive vice president and chief financial officer since 2013, as interim chief executive. Kress previously worked at Cisco and Microsoft. In a statement, she said Nvidia's "strength has always come from its people" and that she was "committed to building on the extraordinary foundation Jensen created over the last 33 years." The board also appointed Harvey C. Jones, an entrepreneur and venture investor, as its first-ever chairman and said it would consider both internal and external candidates for the permanent CEO role.
Huang's exit thrusts the multitrillion-dollar company into uncertainty. Nvidia had no succession plan in place for its longtime leader, who was synonymous with the company much like Steve Jobs was with Apple. The resignation also raises broader questions about the stability of the AI-driven market. "Huang's departure introduces uncertainty well beyond the company itself," said Asa Hiken, senior analyst at research firm eMarketer.
U.S. lawmakers are still seeking to question Huang about his interactions with Alice Huang and the company's security protocols. Rep. Brian Mast, chairman of the House Committee on Foreign Affairs, said the committee had been in contact with Huang's team as recently as Wednesday night after requesting an interview on Nov. 5. Mast said Huang would receive a subpoena if necessary.
Singaporean authorities said Thursday they questioned Alice Huang and confiscated her passport last year as part of an investigation into Megaspeed. They concluded there was insufficient evidence of a crime but suspected she provided "inaccurate information" to downplay her role at the company and barred her from returning. Megaspeed has said it cooperated with the U.S. Commerce Department's Bureau of Industry and Security and has hired a U.S. law firm to audit its chip inventory and export controls. The company's assets soared roughly 90-fold from late 2023 to 2024, to almost $3 billion, while revenue jumped to over $294 million in 2024 from none the previous year.
China has denied attempting to ensnare Jensen Huang. Nvidia has said it has "no reason to believe" that national security or its secrets were compromised, but its inquiry will examine all available information. The company is scheduled to report earnings on Tuesday.