Jensen Huang, the founder who propelled Nvidia to become one of the world’s most valuable companies, has resigned from his role as chief executive after 33 years.
The announcement from Nvidia’s board Friday morning ends a whirlwind several days of speculation about Huang’s future in the wake of a stunning corporate scandal.
It came days after the board said it would investigate whether Huang was the target of a foreign intelligence effort amid reports of his relationship with a woman US officials believe is a Chinese spy, and hours after The New York Times reported that the CEO also had an affair with an executive who reports to him.
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The exit marks a sharp fall from grace for Huang, who is largely responsible for kicking off the AI boom. The chips made by the company he founded in 1993 have become critical to the AI infrastructure, putting Nvidia at the center of the AI buildout and thrusting Huang into President Donald Trump’s inner circle.
Colette Kress, current Executive Vice President and Chief Financial Officer of Nvidia, has agreed to serve as Interim Chief Executive Officer, the company said.
The latest revelation has drawn scrutiny from Nvidia’s board over chief Jensen Huang’s conduct. (EPA PHOTO) Credit: AAP
Nvidia’s stocks slide
Nvidia’s stock slid about seven per cent in early Frankfurt trading on Thursday after the Wall Street Journal first reported that the company was preparing to fire Huang.
If those losses hold, Nvidia will have lost about $US600 billion ($A878 billion) in market value since the board announced its investigation into his relationship with a businesswoman called Alice Huang, who US officials allege is a Chinese spy.
Revelations that US intelligence was probing Alice Huang for facilitating shipments of Nvidia chips to Chinese firms set off a series of events.
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Wall Street began raising questions about Nvidia’s governance and Jensen Huang’s personal conduct while the company’s board launched an internal investigation and hired outside counsel.
US politicians also began to push for tighter curbs on chip exports to China.
Chinese authorities have denied the allegations.
Nvidia’s board has launched an internal investigation into the spy scandal. (EPA PHOTO) Credit: AAP
Alice Huang is currently living in Beijing with the knowledge of security officials, Bloomberg News reported, citing people familiar with the matter.
Chinese foreign ministry spokeswoman Mao Ning said in Beijing on Thursday that the US should stop making up “so-called spy stories” to justify technology blockades
The leadership upheaval comes just days before investors are set to hear from Nvidia on its financial performance and outlook, with its quarterly results due on November 17.
Earlier on Wednesday, the New York Times reported that Huang had also had an extramarital affair with a company executive who reported to him.
The relationship was with Kimberly Powell, Nvidia’s vice president of healthcare, the New York Times said, citing five people who worked at the company.
When reached by phone on Wednesday and asked about his relationship with Powell, Huang said, “I don’t think you should be talking to me directly.”
He then hung up, the New York Times reported.
Investors and analysts said that while demand for Nvidia’s chips would be unlikely to drop in the near term, the broader universe of companies backed by Nvidia – largely customers building data centres that will use its chips – might suffer.
“They are financing their customers. In these types of booms or bubbles, sometimes all it takes is a slowdown to shift it into the bust phase,” said Nick Ferres, chief investment officer at Vantage Point Asset Management in Singapore.
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