Nvidia announced on Thursday that Jensen Huang has stepped down as president, chief executive officer, and board member, following reports of his alleged romantic relationships with two women, one of whom is reportedly suspected by U.S. intelligence of having ties to China's Ministry of State Security. The company has appointed Colette Kress, its executive vice president and chief financial officer, as interim CEO while the board conducts a search for a permanent successor.
Shares of Nvidia (NVDA) dropped more than 10% in premarket trading on Thursday after the announcement, reflecting investor concerns about leadership stability and potential fallout from the scandal.
Colette Kress Takes Charge as Interim CEO
Kress, who has served as Nvidia's CFO since joining the company in September 2013, will retain her CFO duties while also leading the company. The board has initiated a search for a permanent CEO, considering both internal and external candidates.
"During her tenure, she has led the company’s finance organization and has played a key role in NVIDIA’s growth and evolution," Nvidia said in a statement. Kress previously spent nearly 25 years in finance roles at Cisco and Microsoft.
The company also named Harvey C. Jones as its first-ever chair of the board. Jones, a veteran technology executive and venture investor, previously served as CEO and executive chairman of Synopsys.
"Colette has helped lead NVIDIA through a period of extraordinary growth and has a deep understanding of our business, customers, operations and financial position," Jones said. "The Board has full confidence in Colette and the leadership team, and we expect the company’s operations, customer commitments and product roadmap to continue without interruption."
Kress expressed commitment to building on Huang's legacy, stating, "We will continue advancing the work that has made NVIDIA a leader in accelerated computing and AI, and execute on the opportunities ahead."
Reports of Relationships Preceded Huang's Departure
The resignation caps a turbulent week for Nvidia. Reports emerged on Sunday that Huang had been romantically involved with Alice Huang, an executive at Singapore-based data centre company Megaspeed. The New York Times reported that U.S. intelligence agencies had identified her as having been recruited by China's Ministry of State Security to gather information on Jensen Huang. The Information reported that her relationship with Huang had helped facilitate at least $7.5 billion in Nvidia chip shipments to Chinese companies.
Huang acknowledged the relationship earlier this week, prompting Nvidia to investigate whether he had shared any company or national security information with her. While the board initially expressed confidence in Huang, fresh revelations on Wednesday—reported by The New York Times—indicated that Huang had also been romantically involved with Kimberly Powell, Nvidia's vice president of healthcare. These reports intensified pressure on the founder-CEO, with the board reportedly meeting to discuss his potential removal.
Nvidia's statement acknowledged Huang's contributions: "Jensen’s contributions to NVIDIA are profound. NVIDIA is one of the most consequential technology companies in the world. The Board and the company thank Jensen for his immeasurable contributions to the company and the industry."
The leadership transition comes at a critical time for Nvidia, which has been at the forefront of the AI computing boom. The company's future strategy and customer relationships will be closely watched as it navigates this period of uncertainty.
This article is for informational purposes only and does not constitute financial advice.
