Jensen Huang, co-founder and chief executive of Nvidia, stepped down from his role and resigned from the company’s board of directors on 12 November. His resignation took effect immediately. Colette Kress, the Chief Financial Officer, has been appointed as interim head of the largest manufacturer of artificial intelligence chips. The decision was taken against the backdrop of a scandal that has caused the company’s share price to plummet in recent days.
- Jensen Huang has stepped down from his roles as Chief Executive Officer, President and member of the Board of Directors at Nvidia.
- The company’s finance director, Colette Kress, has been appointed interim head.
- The resignation was preceded by an investigation into possible foreign intelligence influence on the company’s chief executive.
- Nvidia shares fell by more than 10 per cent in pre-market trading.
Nvidia has officially confirmed Jensen Huang’s resignation
Nvidia’s Board of Directors has announced the immediate termination of his powers Jensen Huang in the roles of president, chief executive and member of the board of directors. The company published a statement to this effect on 12 November.
Huang was in charge of Nvidia since its foundation in 1993. Over more than three decades, the company has evolved from a manufacturer of graphics processing units for computer games into one of the key suppliers of hardware for artificial intelligence systems.
The following person has been appointed as Acting Director-General Colette Kress, who has held the post of Chief Financial Officer at Nvidia since September 2013. She will retain her current responsibilities until a permanent chief executive is appointed.
The Board of Directors has already begun the search for Huang’s successor. They will consider both internal candidates and candidates from other companies. For the first time in Nvidia’s history, the Chairman of the Board of Directors is Harvey Jones, former head of Synopsys.
What led up to the resignation of Nvidia’s CEO
The resignation came following reports of Huang’s personal relationship with a businesswoman Alice Huang, whom the US authorities, according to media reports, suspect of having links to Chinese intelligence.
On 8 November, Nvidia announced an independent investigation to determine whether the company’s chief executive might have been the target of a foreign intelligence operation. At the time, the board of directors emphasised that it had no reason to believe that US national security or the company’s trade secrets had been compromised.
The situation came to a head on 11 November, when *The New York Times* reported on yet another extramarital affair Huang's relationships — with the head of Nvidia’s healthcare division Kimberly Powell, which was under his command.
On the same day, the board of directors met to discuss Huang’s future in the role. However, Nvidia’s official statement regarding his resignation does not specify the reasons behind the decision.
Nvidia shares plummeted following a change in management
News about a possible Huang’s dismissal caused a sharp fall in Nvidia’s share price. Following official confirmation of the resignation, the company’s shares fell by more than 10 per cent in pre-market trading in the US.
Nvidia, with a market capitalisation estimated at around $4 trillion, plays a central role in the artificial intelligence industry. Its processors are used by leading technology companies to train and run large AI models.
The change in leadership comes ahead of the publication of the quarterly financial results, scheduled for 17 November. Nvidia has stated that it does not expect any disruption to its operations, its fulfilment of obligations to customers or the implementation of its technology strategy.
