'Chinese Spy Scandal': Jensen Huang Steps Down as Nvidia CEO

Jensen Huang is stepping down as chief executive of Nvidia, with the company's Chief Financial Officer Colette Kress appointed interim CEO as the chipmaker begins the search for a permanent successor, Reuters reported on Thursday.

The company also appointed former Synopsys CEO and Nvidia board member Harvey Jones as its first-ever board chairman. Huang, who co-founded Nvidia and holds a stake of about 3.61 per cent, will also leave the board.

His departure follows mounting pressure over reports of two extramarital relationships, including one with Alice Huang, a former executive at Singapore-based cloud company Megaspeed, whom US authorities suspect of being a Chinese intelligence asset. The two are not related.

RELATIONSHIPS TRIGGER BOARD SCRUTINY

Nvidia's board met on Wednesday to consider Huang's future after reports emerged about his relationships. The controversy intensified following a report that he had also been involved with Kimberly Powell, a senior executive at Nvidia who reported to him.

Earlier this month, the company's board had initiated an investigation into whether Huang had been targeted by a foreign intelligence operation. The inquiry was being conducted by independent directors with external legal counsel. The board had initially expressed confidence in Huang.

US President Donald Trump had also backed the Nvidia chief, saying Huang had done an "amazing job" and that he had told him he did not know the Chinese businesswoman was allegedly a spy.

CULPER RESEARCH REPORT RAISED QUESTIONS

The scrutiny over Huang's links with Alice Huang had also featured in a May 13 report by short-selling firm Culper Research, which raised questions about Nvidia's business dealings with Megaspeed and the company's exposure to China.

The report alleged that Nvidia had repeatedly vouched for Megaspeed, described as one of its largest Southeast Asian chip buyers, even as the company faced scrutiny from US and Singapore authorities over suspected diversion of restricted chips to China.

Culper Research also described Huang's relationship with Alice Huang as unusually close, citing photographs and reported meetings between the two. These claims formed part of the short seller's broader allegations about Nvidia's business links and potential exposure to Chinese chip demand.

NVIDIA'S FUTURE UNDER SCRUTINY

Huang's exit leaves the nearly $4 trillion chipmaker facing a leadership transition at a time when its technology and investments remain central to the global artificial intelligence industry.

Reuters reported that Nvidia shares fell more than 10 per cent in premarket trading following the announcement. Analysts have raised concerns about the impact of Huang's departure on the company's ability to coordinate its extensive network of cloud providers, suppliers and AI developers.

The leadership change could also have implications for US policy on semiconductor exports to China, given Huang's support for maintaining access to the Chinese market and his relationship with Trump.

With inputs from ANI