Nvidia names interim CEO after Huang exit

Jensen Huang resigned as chief executive officer of Nvidia on Thursday. The departure follows reports of a second extramarital affair and leaves the company without a permanent leader. A U.S. government investigation into national security breaches is currently underway.

Nvidia is valued at more than $4 trillion. The company stated it does not have a prearranged succession plan. The board will consider candidates from both inside and outside the firm. Colette Kress, the executive vice president and chief financial officer, is now the interim CEO. Harvey C. Jones, an entrepreneur, was appointed as the company's first chairman.

Huang co-founded the American chipmaker and became a public face of the artificial intelligence boom. He admitted to an affair with Alice Huang, a former executive at Megaspeed International. U.S. intelligence agencies reported that Alice Huang, who is not related to the CEO, is a Chinese government agent.

The New York Times reported on Wednesday that Jensen Huang had a second affair with Kimberly Powell. Powell served as the vice president of health care and reported directly to him. Reuters reported hours after the resignation that Huang allegedly had a third affair with another unnamed Nvidia employee.

Ryan Ellis, an associate professor at Northeastern University, said the departure presents a major challenge. His research focuses on communication law, infrastructure politics, and cybersecurity. Ellis noted that Nvidia had a flat structure that granted the chief executive enormous power. The company lacked a formal plan for who would take over.

Ellis said the next leader will determine the company's long-term structure. He noted that Nvidia will likely try to reassure investors that the business is in safe hands. He compared the situation to Apple, which succeeded after Steve Jobs left and Tim Cook took over. Ellis said it is not impossible for a company tied to one individual to thrive after that person departs.

The professor warned that tying corporate success to a single person is a risky strategy. Individuals can make mistakes or be compromised. He suggested other large companies should plan for succession and identify key figures who can step in if needed. He said the current situation illustrates the risks of relying on one key figure.

Ellis said the company may look externally for a new leader. The investigation into governance could influence that decision. If the issues are confined to Huang, an internal candidate might be chosen. Nvidia has employees and board members who have been there for a long time. The AI industry is closely connected, and Nvidia finances much of the data center build-out. A wobble in Nvidia could have ripple effects across the sector.