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Jensen Huang resigns from Nvidia – Colette Kress becomes interim chief executive
Jensen Huang, one of Nvidia’s founders, has resigned as chief executive following reports of extramarital affairs. Chief financial officer Colette Kress will lead the company until the board finds a permanent successor.
Nvidia’s board announced the resignation on Thursday 12 November. Huang also gave up his seat on the board, and the resignation took effect immediately. The company’s statement includes no comment from Huang himself. Nvidia’s shares fell sharply after the news, The New York Times reported.
Kress, 59, has been Nvidia’s chief financial officer since 2013 and remains in that role. The board is looking for a permanent chief executive both inside and outside the company. It also appointed its first-ever chair: Harvey C. Jones, former chief executive of Synopsys.
Jones said the board expects the company’s operations, customer commitments and product roadmap to continue without interruption. As previously announced, Nvidia will publish its third-quarter results on 17 November and hold a meeting for all staff the following day.
Huang’s flat organisation may make Kress’s job harder, the NYT reported: more than 60 executives reported directly to him. Kress also lacks Huang’s relationships with the supply chain and Washington.
Resignation followed revelations of two affairs
Reports of two extramarital affairs preceded the resignation, The Verge reported. The NYT first reported Huang’s relationship with Alice Huang (no relation), who has been an executive at Megaspeed, a Singapore-based cloud company. US intelligence agencies believe Alice Huang is a spy for China, the paper reported, and Megaspeed is suspected of smuggling Nvidia chips into China. Jensen Huang admitted to being unfaithful in a message to staff at the weekend, The Verge reported.
On Wednesday the NYT, citing five people who have worked at Nvidia, reported a second affair, this time with an executive who reported directly to Huang. The Wall Street Journal, cited by The Verge, reported that the board planned to meet that evening and possibly oust Huang. After the Wednesday evening meeting, the board accepted Huang’s resignation. On Thursday the news agency Reuters reported a third relationship, again with an Nvidia employee.
Commerce Department’s line on Nvidia under criticism
The case has raised the question of whether Commerce Secretary Howard Lutnick shielded Nvidia over chip export controls, the NYT reported. Officials who spoke to the paper anonymously said Nvidia’s matters followed a separate track within the department. The company’s general counsel, Tim Teter, was able to comment directly on draft rules, they said. The department ended its Megaspeed investigation late last year and passed it to the Justice Department after Teter contacted its investigators, the paper reported.
A department spokesperson denied to the NYT that the relationship between President Donald Trump and Huang had slowed the department’s actions, calling the claim false and reckless.
Trump had reportedly called Huang on Tuesday and urged him to stay in his post, Platformer’s Casey Newton wrote. After the resignation, Trump used Truth Social to call for Tim Cook, Apple’s former chief executive and current chairman, to succeed Huang, 9to5Mac reported. Besides Kress, possible successors named in news reports include AMD chief executive Lisa Su and Arm chief executive Rene Haas, The Verge reported.
What this is based on
- NVIDIA Announces CEO Transition
- Howard Lutnick Took Softer Line on Nvidia as Calls for Tougher Controls Grew
- Read Nvidia’s internal emails about the ‘extraordinarily difficult period’ amid CEO shakeup
- President Trump calls on Tim Cook to be next NVIDIA CEO - 9to5Mac
- Who Is Colette Kress, the Interim Nvidia CEO Replacing Jensen Huang?
- Nvidia CEO Jensen Huang resigns amid spy, affair scandals
- Jensen Huang and the end of the ‘lol nothing matters’ era of American politics