Nvidia CEO Jensen Huang Steps Down Amid Scandal

Jensen Huang has officially resigned as the chief executive officer of Nvidia. The departure comes after widespread reports regarding his personal life, specifically involving alleged extramarital affairs with a suspected Chinese spy and a senior company employee. The company’s board of directors announced that Colette Kress, the current chief financial officer, will serve as interim CEO until a permanent successor is identified.

In a formal statement, the board highlighted Huang’s significant impact on the firm without explicitly detailing the recent controversies. They described his contributions as profound, noting that Nvidia has become one of the most influential technology firms globally. The board expressed gratitude for his immeasurable efforts toward both the company and the broader industry during his tenure as a co-founder.

Earlier in the week, the board hired the prominent law firm Wachtell, Lipton, Rosen & Katz to lead a thorough and independent investigation. This probe focuses on Huang’s relationship with Alice Huang, a businesswoman who is not related to the Nvidia chief. The legal team had initially advised Huang to continue leading the company while the inquiry proceeded. Alice Huang serves as the head of Megaspeed, a Singapore-based datacenter company, and US intelligence services have suspected her of being a Chinese asset, according to multiple reports.

New complications emerged late on Wednesday when the New York Times revealed that Huang had also maintained a separate extramarital relationship with Kimberly Powell. Powell held the position of president of healthcare at Nvidia. Reports indicate that the pair were captured on video displaying affection at a hotel during a corporate conference in March. Powell has been contacted for comment as the board convened to discuss the situation.

Huang’s exit marks a significant shift in Silicon Valley leadership at a critical time for the artificial intelligence race between the United States and China. As a co-founder of the company established in 1993, Huang held a unique management structure with dozens of direct reports, emphasizing his direct control. He owns approximately 3.6% of the company, representing more than 870 million shares, which values his stake at roughly 145 billion dollars, making him the 13th richest person in the world.

Nvidia remains a cornerstone of the global AI ecosystem, engineering the advanced chips required to train models and power major players like OpenAI and Anthropic. With a market capitalization exceeding four trillion dollars, the firm is one of the most valuable entities on Earth. However, the stock price has suffered as the scandal has unfolded.

Financial markets reacted sharply to the news. Following reports from the Wall Street Journal that the board was preparing to oust Huang, Nvidia shares dropped by about 7% in pre-market trading on Thursday. Over the past few days, the stock has declined by more than 11%, reflecting the uncertainty surrounding the company’s leadership transition.

Huang, who has been married to Lori since 1985, acknowledged the affair in an email to employees on Sunday. He confirmed he would cooperate with the internal investigation, which the board launched after reports emerged that he was the target of a foreign intelligence effort. While he admitted to the relationship, he denied knowing that Alice Huang worked for the Chinese government. The two have been seen together at various locations worldwide over the last few years.

Public support for Huang has remained strong from notable figures in the tech and political spheres. President Donald Trump praised Huang, describing him as an honorable guy who has done an incredible job. Major industry peers, including Elon Musk, have also voiced their support. Despite this backing, the financial impact on Nvidia’s share price highlights the market’s sensitivity to the leadership changes at the world’s leading chipmaker.