Jensen Huang Resigns as Nvidia CEO Amid Spy Allegations

Jensen Huang has stepped down as president and CEO of Nvidia, effective immediately, as the company's board investigates reports that he was targeted by a Chinese intelligence operation. Huang, who co-founded Nvidia in 1993, has also relinquished his board seat. The company's board has launched an investigation into the allegations, which Huang has acknowledged in an email to employees, admitting to being "unfaithful to my wife" and pledging to cooperate fully with the investigation.

Chief Financial Officer Colette Kress will lead Nvidia temporarily while the board searches for a permanent successor. Kress has over 13 years of experience at Nvidia and has previously worked at Cisco and Microsoft. The company's announcement stated that Kress would retain her responsibilities as executive vice president and chief financial officer during the transition. The search for a new CEO will include candidates from within Nvidia and outside the company.

The allegations against Huang concern his personal relationships, including one with Alice Huang, a former executive at Singapore-based technology company Megaspeed, which was an Nvidia customer. China's Foreign Ministry has rejected the espionage claims, and the Associated Press has said it could not independently verify the reported relationships. Megaspeed has said it takes US export controls seriously and is cooperating with authorities.

The controversy surrounding Huang widened with reports of a separate relationship between him and Kimberly Powell, Nvidia's vice president overseeing healthcare activities. Huang's published admission of unfaithfulness and the subsequent allegations should be distinguished from any finding about espionage or the disclosure of company information. The investigation is being conducted by former acting US attorney Joon H. Kim and his firm, Wachtell, Lipton, Rosen & Katz.

Nvidia's board has expressed confidence in the company's leadership and operations, stating that it had no reason to believe that Nvidia's secrets or US national security had been compromised. The company's next scheduled financial announcement will proceed during the leadership transition, with its third-quarter fiscal 2027 results set to be released on November 17.

The leadership change has had an impact on Nvidia's market value, with shares falling approximately 11 percent in pre-market trading. Nasdaq futures were down just over one percent, reflecting wider weakness in technology stocks. Nvidia has appointed Harvey C. Jones as its first board chairman, who has expressed confidence in Kress's ability to lead the company during the transition.

Huang's departure marks the end of an era for Nvidia, which has grown from a graphics processor company to a major player in the AI industry. The company's graphics processing units, or GPUs, are widely used in data centers supporting AI systems. The company's value is estimated to be around $4 trillion, and its role as a supplier to other technology companies and its investments across the AI industry have attracted scrutiny.

Key points

• Jensen Huang resigns as Nvidia CEO amid investigation into alleged ties to Chinese intelligence operation
• Colette Kress to lead Nvidia temporarily during the transition
• Investigation into allegations against Huang is ongoing, with no conclusion announced yet