Nvidia CEO Jensen Huang resigns over affair scandal after stock price plunges

Nvidia CEO Jensen Huang resigns over affair scandal after stock price plunges Board of directors met to decide executive’s fate as shares fell 9 percent in after-hours trading, knocking $350 billion off value of chipmaker powering global AI boom - Bookmark - CommentsGo to comments Become an Independent member to bookmark this article Already a member? Log in Nvidia CEO Jensen Huang has resigned after the chipmaker was rocked by allegations about his personal life, including that he had an affair with a woman alleged to be a Chinese spy as well as with a married subordinate. The company’s board of directors reportedly met to decide executive’s fate after shares fell 9 percent in after-hours trading Wednesday, knocking $350 billion off the company’s value. Announcing the resignation in a statement Thursday, the company said: “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.” Huang, 63, was revealed to have had an affair with former Megaspeed director Alice Huang — no relation — whom U.S. intelligence has said facilitated shipments of Nvidia’s microchips to Chinese firms as part of a foreign intelligence operation. The infidelity was first reported by The New York Times, which then alleged that the executive had also had a relationship with Kimberly Powell, his company’s vice president of healthcare, who is also married. Huang’s exit creates a leadership vacuum at the $4 trillion chipmaker he co-founded in 1993 and has led ever since, which is the driving force behind the global AI boom and at the heart of the big tech arms race between the U.S. and China. Colette Kress, current executive vice president and chief financial officer will serve as interim chief executive officer until a permanent successor has been named. The Board has started a search for a permanent CEO and will consider internal and external candidates, the firm said Thursday. “Colette has helped lead Nvidia through a period of extraordinary growth and has a deep understanding of our business, customers, operations and financial position,” said Harvey Jones, Chair of the NVIDIA Board of Directors. “She is supported by an experienced leadership team that has been instrumental in executing Nvidia’s strategy and advancing its technology roadmap. 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.” After his infidelities were first disclosed, the executive sent a memo to Nvidia employees Sunday admitting he had been unfaithful to his wife and saying he was “deeply sorry” without going into details. Nvidia’s board responded by launching an internal investigation led by law firm Wachtell, Lipton, Rosen & Katz. China meanwhile denied the espionage claims, calling them “purely unsubstantiated and directed at smearing China.” The fallout from the scandal has already reached Washington, where it has been reported that President Donald Trump was “warned” about Huang’s compromised position by Secretary of State Marco Rubio in May as the executive joined their visit to Beijing, despite his saying earlier this week he had been blindsided by the news. Republican leaders of three House committees called for Huang to deliver closed-door testimony on his interactions with the alleged intelligence asset. Democratic senators Elizabeth Warren and Chris Coons have also written to Commerce Secretary Howard Lutnick to demand that all company records relating to Nvidia’s dealings with China be preserved. Prior to the announcement, Jeffrey Sonnenfeld, an expert on corporate governance at Yale School of Management, told NBC News that the executive “has lost his legitimacy to lead internally in the eyes of the company, and he’s lost his external credibility in the eyes of key constituents, including customers.” Fellow tech boss Elon Musk, however, has already said it would be “an honor” to hire Huang following his ousting. More follows on this breaking story.... Join our commenting forum Join thought-provoking conversations, follow other Independent readers and see their replies Comments