For a generation of investors, Jensen Huang and his trademark leather jacket were the face of the AI gold rush. On Thursday that era ended abruptly. Nvidia’s board announced that its 63-year-old co-founder had stepped down as president and chief executive and given up his board seat, effective immediately, closing a 33-year run at the top. The company offered no reason, and a spokesperson said Huang would have no further role of any kind.
The exit capped a week of damaging revelations. On Sunday Huang told staff in a memo that he had been unfaithful to his wife, writing that there was “no excuse” for his behaviour. Reports linked him to Alice Huang, no relation, who once held a senior post at Singapore-based Megaspeed. American spy agencies reportedly concluded in a memo this spring that she worked for Beijing’s intelligence service, a claim China rejects outright. What alarmed Washington most is that Megaspeed bought Nvidia hardware and is under criminal investigation over alleged smuggling of advanced chips into China. Singapore added on Thursday that it had refused her re-entry in February after she misled investigators. On top of that came a newspaper account of another romance, this time with a manager in Huang’s own chain of command.
Chief financial officer Colette Kress now steps in as interim CEO while keeping her finance role. The board also created the post of chair for the first time and gave it to Harvey C. Jones, a former Synopsys chief. Candidates from inside and outside the company will be considered for the permanent job.
Investors initially panicked: the stock plunged by up to 16% intraday, then clawed back much of the loss to finish roughly 4% lower. AFP estimates the affair has erased close to half a trillion dollars in market value.
Lawmakers want Huang to testify, and an outside law firm hired by Nvidia is still examining whether he was targeted by a foreign intelligence operation. President Donald Trump, for his part, said the need for a resignation hinged on whether espionage was actually proven.
