SRINAGAR: Jensen Huang, the billionaire co-founder and chief executive of Nvidia, has resigned with immediate effect, bringing an abrupt end to his 33-year leadership of the company that became the driving force behind the global artificial intelligence revolution. His departure follows a week of mounting controversy over two reported extramarital relationships, one involving a businesswoman whom US intelligence agencies suspect of working for China.
Nvidia announced on Thursday that Huang had stepped down as president, chief executive and a member of its board. Chief Financial Officer Colette Kress will serve as interim CEO while the company searches for a permanent successor, considering both internal and external candidates.
The departure marks a dramatic reversal for the 63-year-old executive, whose personal standing, political connections and technological vision had made him one of the most influential figures in the global technology industry. Huang, ranked among the world’s richest individuals, owns approximately 3.61 per cent of Nvidia and is its fourth-largest shareholder.
The company also announced the appointment of Harvey C. Jones, former chief executive and executive chairman of Synopsys, as its first-ever board chair.
The resignation came after Nvidia’s board met to consider Huang’s future amid reports of two separate relationships. Reuters had reported on Wednesday that the board was weighing whether to remove him, citing a person familiar with the matter. The Wall Street Journal had separately reported that the company was preparing to oust its chief executive.
The first controversy centred on Alice Huang, a former executive of Singapore-based data centre company Megaspeed International, who is not related to Jensen Huang. The New York Times reported that US intelligence agencies had concluded that she was recruited by China’s Ministry of State Security and had been feeding information to Beijing. Her relationship with the Nvidia chief became a matter of national security concern because of her company’s business links with the chipmaker and its access to advanced processors.
Huang subsequently acknowledged being unfaithful to his wife, Lori Huang, in a message to Nvidia employees. In the message, reported by The Associated Press, he wrote: “I was unfaithful to my wife. My actions hurt her and our children.” He added that he was “deeply sorry”.
Nvidia’s board had initially announced an independent investigation into whether Huang had been targeted by a foreign intelligence operation. It said it had “no reason to believe” that national security or company secrets had been compromised, while stating that the inquiry would examine all available information.
The controversy widened on Wednesday when The New York Times, citing five people who had worked at Nvidia, reported that Huang had also had an extramarital relationship with Kimberly Powell, the company’s vice-president of healthcare, who reported directly to him. The report added another dimension to the governance crisis, raising questions about workplace relationships and the concentration of authority around the chief executive. Neither Huang nor Nvidia has publicly confirmed the second relationship.
China has rejected the espionage allegations, describing them as “purely unsubstantiated and directed at smearing China”.
Huang’s departure leaves a major leadership gap at a company that has become central to the global AI industry and the technological competition between the United States and China. Nvidia’s graphics processing units, originally developed for gaming and visual computing, have become indispensable to the training and deployment of advanced AI systems.
Founded in 1993 by Huang, Chris Malachowsky and Curtis Priem, Nvidia grew from a graphics-chip start-up into the world’s most valuable technology company. Its GPU architecture and CUDA software platform helped establish its dominance in accelerated computing, placing it at the centre of the investment boom in artificial intelligence.
The scale of Huang’s influence extended beyond product development. Nvidia reinvested substantial resources in cloud providers, technology companies and AI developers, creating an interconnected ecosystem in which the chipmaker became both a supplier and an investor in businesses dependent on its technology.
That model could now come under closer scrutiny. Reuters quoted Michael Feldman, portfolio manager at ClearBridge Investments, as saying that the immediate risk was not the company’s technology roadmap but its ability to execute.
“The risk is execution. Jensen has been the chief conductor of an extraordinarily complex system,” Feldman said, adding that in an industry facing real bottlenecks, such coordination was itself a competitive advantage.
Other market observers warned that the transition could affect Nvidia’s strategic partnerships, pricing arrangements and financing of customers. Reuters quoted Susannah Streeter, chief investment strategist at Wealth Club, as saying that Huang’s departure would leave the company facing uncertainty over its strategic priorities, commercial relationships and supply agreements.
The company’s shares came under heavy pressure amid the leadership crisis, contributing to a wider decline in technology stocks. Reuters reported that the shares had fallen sharply in early trading before recovering some ground. The market reaction reflected concerns about how much of Nvidia’s extraordinary performance had been built around Huang’s personal leadership and relationships.
The controversy has also spilt into Washington, where Nvidia’s position in the US-China technology contest gives the affair implications beyond corporate governance.
Huang had been an influential advocate of maintaining access to the Chinese market, arguing that US companies should retain a commercial presence there even as Washington tightened restrictions on advanced semiconductor exports. The allegations involving Alice Huang have intensified questions about the security risks surrounding Nvidia’s business relationships and the enforcement of export controls.
US lawmakers have sought answers about the company’s dealings with China and the information available to the administration. Senators Elizabeth Warren and Chris Coons have written to senior officials seeking the preservation of government records concerning the suspected intelligence operation and Nvidia’s business links with Megaspeed.
President Donald Trump, who had publicly praised Huang during the controversy, reacted to his resignation by suggesting a successor. “NOW THAT Nvidia CEO JENSEN HUANG, who has done a fantastic job, has resigned, there is only one man to take his place – TIM COOK of Apple,” Trump wrote on Truth Social. “A Legend replaces a Legend!”
Trump had earlier said Huang told him he had no idea that the Chinese businesswoman with whom he had a relationship was a suspected spy. He described the Nvidia chief as an “honourable guy” who had “done an amazing job for our country”.
Nvidia said it expected its operations, customer commitments and product roadmap to continue without interruption. Board chair Harvey Jones praised Kress’s experience, saying she had helped lead the company through a period of extraordinary growth and possessed a deep understanding of its business, customers, operations and financial position.
“The board has full confidence in Colette and the leadership team,” Jones said.
Kress, who joined Nvidia in September 2013, said the company’s strength rested with its people and that she was committed to building on the foundation Huang had created over 33 years.
The board’s challenge, however, extends beyond finding a successor to a chief executive. Huang’s departure raises questions about succession planning, corporate oversight and the extent to which Nvidia’s technological and commercial success depended on one individual.
For investors, the immediate concern is whether the company can preserve its technological lead and extraordinary profitability while navigating a change in leadership at a time when competitors are developing alternatives to its processors and customers are seeking to diversify their suppliers.
Nvidia is scheduled to announce its third-quarter fiscal 2027 results on November 17. The results will provide an important indication of the company’s financial position as it enters its first major leadership transition since its founding.
Reports in the global media suggest that the Chinese businesswoman has returned to Beijing, even as US investors count their losses amid a sharp sell-off in Nvidia shares
