Jensen Huang resigns as Nvidia CEO after affair reports, Decrypt says
In brief
- Jensen Huang resigned as Nvidia's president, CEO and board member after 33 years, Decrypt reports.
- Reports tied Huang to a Megaspeed executive whom U.S. officials reportedly suspected of gathering information for Beijing.
- Nvidia's board said it saw no reason to believe secrets or national security were compromised.
- Colette Kress, Nvidia's CFO, is interim CEO; Harvey Jones became board chair, per Decrypt.
- Nvidia shares fell more than 14% at Thursday's open and closed down about 4.6%, Decrypt reported.
How the week unfolded
The crisis began with reports that Huang had grown close to Alice Huang, an executive at Singapore-based Megaspeed (one of Nvidia's largest Southeast Asian customers). The two aren't related. U.S. intelligence officials reportedly suspected her of gathering information for Beijing, and that's still an unconfirmed report.
Nvidia's board opened an independent investigation into whether Huang had been targeted by a foreign intelligence operation, and said it had no reason to believe company secrets or national security were compromised. Singapore barred Alice Huang from returning to the country. Congressional committees had already sought a closed-door briefing from Huang over his Megaspeed ties.
On Nov. 8, Huang apologized for being "unfaithful" to his wife and acknowledged the relationship. The New York Times reported, according to Decrypt, a second affair with Kimberly Powell, Nvidia's vice president of health care, who reported to Huang. A day after the resignation, Reuters reported, according to Decrypt, a third, intimate relationship with another unnamed Nvidia employee, citing two people familiar with the matter (Nvidia declined to comment). He's acknowledged only the Alice Huang affair.
By Thursday, Huang was out.
Who's running Nvidia now
CFO Colette Kress was named interim CEO, and longtime director Harvey Jones became board chair, per Decrypt. According to the Financial Times, as reported by Decrypt, the board approached Arm CEO Rene Haas, a former Nvidia executive, as a potential successor. Nvidia called speculation about any candidate "premature." Analysts have also floated Nvidia's Ian Buck and AMD's Lisa Su.
Nvidia stock fell more than 14% at Thursday's open before closing down about 4.6%, Decrypt reported. Rivals AMD and Broadcom fared better, while companies closely tied to Nvidia's business were hit hardest. Alibaba shares slid on reports it was a Megaspeed customer.
Inside the company
Staff didn't stay quiet. An internal suggestion-box post drew more than 1,600 comments, many asking for Huang's return.
“If you believe in the mission, bring back THE boss,” one wrote.
Prominent figures in tech, AI and crypto criticized the ouster, with one founder calling it "a massive mistake." Nvidia is scheduled to report earnings on Nov. 17, with Kress as interim leader and the permanent CEO search still underway.
Frequently asked questions
Who is leading Nvidia after Jensen Huang's resignation?
According to Decrypt, CFO Colette Kress was named interim CEO and longtime director Harvey Jones became board chair. The search for a permanent CEO is ongoing. LeoDex News couldn't independently verify these appointments.
Did Nvidia's board find that company secrets were compromised?
No. Nvidia's board opened an independent investigation into whether Huang had been targeted by a foreign intelligence operation, and said it had no reason to believe company secrets or national security were compromised, according to Decrypt.
