It's now official. Jensen Huang , co-founder and CEO of Nvidia since 1993, resigned on Thursday from all his positions at the head of the American semiconductor giant. His departure is effective immediately, following several days of revelations about two extramarital affairs, one with a woman suspected of spying for China. The 63-year-old executive is also leaving the board of directors of the company he founded thirty-three years ago.
The company announced that Colette Kress, previously chief financial officer, would serve as interim CEO. Harvey C. Jones will assume the chairmanship of the board, while a recruitment process has been launched to select a permanent successor. This resignation brings to an end several days of internal tensions and a crisis that has cost Nvidia hundreds of billions of dollars in market capitalization.
A mistress suspected of spying for China
The affair began with revelations concerning Alice Huang, a Chinese businesswoman linked to Megaspeed International, a Singapore -based IT infrastructure and data center company . US intelligence services suspect her of having worked for Chinese intelligence and of having sought to obtain sensitive information from the head of Nvidia.
Alice Huang is also alleged to have played a role in operations that allowed Chinese companies to access US processors subject to export restrictions. Megaspeed has purchased billions of dollars worth of Nvidia equipment in recent years. US authorities are investigating the circumstances under which this equipment was sold and used.
The revelations had already led to the opening of an independent investigation into the espionage allegations against Jensen Huang . However, no public evidence establishes that the executive knowingly transmitted trade secrets to Beijing. China rejects the espionage accusations.
Jensen Huang had admitted to cheating on his wife
On Sunday, Jensen Huang addressed a message to Nvidia employees acknowledging his infidelity and apologizing to his wife Lori, to whom he has been married for about forty years : "I have been unfaithful to my wife. My actions have hurt her and our children. There is no excuse for what I have done. I am deeply sorry."
The executive also admitted to failing in his personal and professional responsibilities. He pledged to fully cooperate with the independent investigation launched by the board of directors.
At that time, Nvidia publicly reaffirmed its confidence in its founder. The board of directors stated that they had no evidence that confidential information or trade secrets had been compromised.
A second affair with an Nvidia executive precipitates the crisis
On Wednesday, new revelations worsened Jensen Huang's situation. The executive is also alleged to have had an extramarital affair with Kimberly Powell, Nvidia's vice president in charge of the healthcare sector.
This executive reports directly to the CEO. The revelation of this second alleged affair has raised questions about the company's governance rules, hierarchical relationships, and potential conflicts of interest. Neither party has publicly confirmed the relationship.
This new information has led the board of directors to review whether Jensen Huang should remain as CEO of Nvidia. The board met on Wednesday to discuss his future, as several investors demanded assurances regarding the company's stability.
Colette Kress immediately replaces Jensen Huang
Nvidia announced on Thursday that Jensen Huang had resigned from his positions as president, CEO and board member, effective immediately.
Colette Kress, executive vice-president and chief financial officer since 2013, is taking over the reins of the company on an interim basis. She will also retain her financial responsibilities until a new CEO is appointed.
The board of directors has appointed Harvey C. Jones as its chairman. Jones, a former executive at Synopsys, will oversee the search for a permanent successor. Nvidia will consider both internal candidates and those from outside the company.
This reorganization represents a historic change for Nvidia. Since its founding in 1993, Jensen Huang had remained the company's sole CEO.
Elon Musk had proposed recruiting Jensen Huang
Just hours before announcing his resignation, Elon Musk had publicly expressed his interest in Jensen Huang. When asked on X about a possible recruitment of the Nvidia CEO, the billionaire replied: "It would be an honor."
This statement, detailed in our article on Elon Musk's proposal to recruit Jensen Huang , immediately attracted attention in the technology sector.
The head of Tesla, SpaceX , and xAI did not specify which of his companies he might hire Jensen Huang at, nor what role he would consider for him. No hiring agreement has been announced.
The two men maintain significant business relationships. Tesla and Elon Musk's companies notably use Nvidia processors for their artificial intelligence projects and computing infrastructure.
A drop of more than 8% in the stock market and hundreds of billions gone.
The crisis also caused significant turbulence in the financial markets. On Wednesday, after the close of Wall Street , Nvidia's stock had fallen by more than 8% in electronic trading following revelations about Jensen Huang's second extramarital affair and possible dismissal.
Since the start of the affair, the group's market capitalization has fallen by several hundred billion dollars. Nvidia, whose valuation still exceeds several trillion dollars, occupies a central position in the global artificial intelligence industry.
Jensen Huang owns approximately 3,6% of the company's capital. Under his leadership, Nvidia has transitioned from the market for graphics cards intended for video games to that of processors essential for the development of artificial intelligence models.
His departure now forces the group to organize a succession that investors had never really had to consider since its creation.
The investigation into the espionage suspicions continues
Jensen Huang's resignation does not end the investigations concerning Alice Huang and potential transfers of American technology to China. Nvidia's board of directors has entrusted the investigation to an independent committee, assisted by external legal counsel.
US authorities are also examining the activities of Megaspeed International and the conditions under which Nvidia processors were made available to Chinese companies despite trade restrictions imposed by Washington.
Several US lawmakers have demanded explanations regarding the relationship between Jensen Huang and Alice Huang, as well as the potential national security implications. A class-action lawsuit has also been filed by shareholders accusing Nvidia and its former CEO of withholding information that could affect the company's value.
Nvidia is now due to release its quarterly results on November 17. Colette Kress will serve as interim CEO at this deadline, while the board of directors continues its search for a permanent successor to Jensen Huang.
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