IBNS-CMEDIA: Nvidia CEO Jensen Huang has stepped down from his position amid an escalating controversy surrounding an alleged China-linked espionage scandal and reports of an extramarital affair with a subordinate.
Chief Financial Officer Colette Kress will take over as interim CEO, the company announced on Thursday.
In a statement, Nvidia said its board would initiate a search for a permanent successor, considering both internal and external candidates. Huang will also step down from the company’s board.
“The Board is initiating a search for a permanent Chief Executive Officer and will consider internal and external candidates,” the statement read.
The announcement comes as pressure mounted on the 63-year-old billionaire, who co-founded Nvidia and is among its largest shareholders. Reports of an alleged second affair involving a subordinate who reportedly worked directly under him added to the controversy.
How the China spy scandal unfolded
The leadership crisis follows a report by The New York Times last month alleging that US intelligence agencies had uncovered a close relationship between Huang and Alice Huang, who was suspected of passing intelligence directly to Beijing.
Following Nvidia’s announcement of an internal investigation on Sunday, US President Donald Trump confirmed on Monday that the FBI was also looking into the matter.
Nvidia has maintained that it has found no reason to suspect a breach of national security or the compromise of internal secrets.
However, the company said its investigation would examine all available information.
China, meanwhile, has denied any involvement in the alleged attempt to compromise the Nvidia chief.
Trump says Huang had no idea about alleged spy links
Trump said Huang had denied knowing that the woman was allegedly working as a spy and that he believed the Nvidia chief.
“I asked him that question, ‘Did you have any idea that she was a spy?’ He said, ‘I had no idea that she was a spy’ and I really believe him,” Trump told reporters during a White House briefing.
The US President also confirmed that the FBI was investigating the matter, adding that he believed Huang would be “in good shape”.
The controversy has put the spotlight on Nvidia’s business dealings with China. Under Huang’s leadership, the company emerged as the world’s leading manufacturer of artificial intelligence (AI) chips.
His lobbying efforts in Washington also helped secure Trump administration approval in January for Nvidia to export its H200 chips to the Chinese market.
Nvidia shares plunge 13%, $1.7 trillion market value wiped out
The leadership turmoil has added to investor anxiety, with Nvidia shares plunging 13 per cent in premarket trading on Thursday.
The company’s stock has reportedly lost more than a third of its value since reaching a record high last month, wiping approximately $1.7 trillion off its market capitalisation.
Investors will now closely monitor the company’s upcoming financial results and earnings call for indications of how the leadership transition and ongoing investigations could affect its business.
Nvidia said it would announce its third-quarter fiscal 2027 financial results on November 17 at approximately 1:20 pm PT, followed by an earnings call at 2 pm PT, as scheduled.
