Jensen Huang resigns four days after admitting a relationship with a suspected spy

On October 29, the New York Times revealed that US intelligence has been monitoring Alice Huang, the leader of Megaspeed, a Singapore-based client of Nvidia (nearly 5 billion dollars worth of chips purchased), for over a year. The United States suspects Alice Huang of having been recruited by Chinese services to target Jensen Huang. Megaspeed is also suspected of having smuggled some of its Nvidia chips to China, potentially to support the development of Chinese models, which it denies. On Sunday, November 8, Jensen Huang admitted to being unfaithful to his wife, and Nvidia's board launched an independent investigation, while US authorities investigated smuggling allegations targeting Megaspeed. Beijing, on the other hand, denies any espionage activities.

Three days later, on November 11, the New York Times disclosed that Jensen Huang had allegedly engaged in a second affair, this time with an Nvidia vice-president under his direct authority. According to the newspaper, the two were filmed in a hotel in San Jose during the Nvidia GTC conference in March. A few hours later, the Wall Street Journal reported that the board was preparing to remove him.

30 minutes before the opening of Wall Street, which is expected to be turbulent for Nvidia and the tech sector, Nvidia announces that its co-founder is resigning. By stepping down himself, Jensen Huang avoids a firing and a battle he is already expected to lose against his board of directors: he completely steps away from the company he propelled to the top of the global economy. The markets did not take long to react: Nvidia's stock fell 13% at the opening, before stabilizing around -10% during the early session.

His departure marks the end of a 33-year reign. Under Jensen Huang's leadership, Nvidia evolved from a manufacturer of graphics cards for gamers to an indispensable supplier of AI chips, holding about 90% of the AI chip market. In 2006, his bet on CUDA, the software that allows using graphics cards for computing, made the entire industry dependent on his chips. However, Jensen Huang remains one of the company's top individual shareholders, owning about 3.5% of the shares.

Who is Colette Kress, the interim CEO of Nvidia?

As Nvidia's CFO since 2013, who previously worked at Cisco and Microsoft, Colette Kress will hold both positions until a permanent CEO is appointed. According to Semafor, she was the preferred candidate for several board members for the interim role, and she says she wants to build on « the extraordinary foundations » created by Jensen Huang over 33 years. The board launches a search for a successor and will consider both internal and external candidates: a puzzle in a company built around a single man, without a number two or a designated heir. Several names are already circulating, such as Ian Buck, the father of CUDA at Nvidia, or Johny Srouji, head of Apple's hardware, mentioned by American press speculation.

The first test for the interim CEO comes quickly. Nvidia maintains its quarterly results presentation on Tuesday, November 17, at 10:20 PM Paris time, followed by an investor conference at 11:00 PM. Colette Kress, accustomed to the exercise alongside Jensen Huang, will for the first time have to reassure the markets alone about the future of the most strategic company in AI.

Resignation does not close the case. The U.S. justice is continuing its investigation into Megaspeed and a potential diversion of chips to China, and three Republican chairmen of House committees had requested a closed-door hearing with Jensen Huang on November 18. It remains to be seen whether the former CEO of Nvidia will attend, and what will become of the internal investigation launched by the board of directors.

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