Nvidia CEO Steps Down After Spy Affair Scandal
Colette Kress takes over as interim chief executive following a board decision triggered by national security questions.
By Adrian Kovalenko ·
Jensen Huang stepped down as chief executive of Nvidia on Thursday, ending his tenure at the chipmaker following an extramarital affair that raised questions about U.S. national security.
The board of directors appointed Colette Kress as the interim CEO. She currently serves as the company's executive vice president and chief financial officer.
Huang resigned after reports emerged that he was involved with Alice Huang, a former executive at Megaspeed International. U.S. intelligence agencies determined that Alice Huang was feeding information to Beijing. A separate report from The New York Times indicated that Jensen Huang also had a relationship with an Nvidia employee who reported directly to him. The Associated Press has not independently confirmed the second relationship.
Nvidia shares dropped 10% in premarket trading on Thursday. The stock price reaction followed the board's decision to discuss the CEO's future after the revelations broke.
The board also selected Harvey C. Jones as its first chairman. Jones is an entrepreneur and venture investor. This structural change coincided with the leadership transition at the top of the company.
Megaspeed International, which is headquartered in Singapore, issued its first statement regarding the scandal on Thursday. Chairman and CEO Tan Yong Pong, who also goes by James Tan, said the company takes its obligation to comply with U.S. export control laws extremely seriously.
Megaspeed stated that it is cooperating with the U.S. Department of Commerce's Bureau of Industry and Security. The company hired a U.S. law firm to conduct a comprehensive census of its computer chips to verify export controls. Megaspeed said it is ready to cooperate fully with any other relevant U.S. government authority.
Nvidia has said it had no reason to believe that national security or company secrets were compromised. However, the company stated that its internal inquiry will examine all available information. In January, President Donald Trump approved the sale of Nvidia's H200 chips to China, a move that Huang had lobbied for.
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