Nvidia loses its AI architect: Huang's exit puts AI dominance to test

Jensen Huang's resignation as Nvidia's chief executive is set to create uncertainty for the $4 trillion chipmaker and the wider artificial intelligence industry, where his leadership has played a central role in shaping the AI boom.

Huang, who co-founded Nvidia, is stepping down as president, CEO and a board member with immediate effect. Chief Financial Officer Colette Kress will take over as interim CEO as the company searches for a permanent successor. Nvidia has also appointed former Synopsys CEO and board member Harvey Jones as its first-ever board chairman.

Huang, who holds a stake of about 3.61% in Nvidia and is its fourth-largest investor, is leaving the board as well. Nvidia shares fell more than 10% in premarket trading following the announcement, weighing on the broader market.


Also read: Jensen Huang quits as Nvidia CEO amid affair scandal; AI chip giant names Colette Kress interim chief

His departure comes at a critical juncture for the AI industry. Nvidia's chips have become central to the development of artificial intelligence systems because of their ability to perform large numbers of calculations simultaneously. The company has grown from a graphics chipmaker best known among gamers into a major supplier of AI infrastructure, becoming the world's most valuable company.

Huang also played a key role in financing the wider AI ecosystem, directing Nvidia's growing cash reserves back into cloud providers, suppliers and some of the industry's biggest AI laboratories. His exit could therefore have implications beyond the company's own operations, potentially affecting an ecosystem that has grown around Nvidia's investments and partnerships.

The leadership change also comes as investor sentiment towards AI stocks faces pressure. Rising cash expenditure and increasing debt among traditionally cash-rich technology companies have fuelled questions about whether the massive investments in artificial intelligence will generate sufficient returns.

Nvidia's future direction could also have implications for US chip export policy. Huang had pushed to preserve access to the Chinese market and maintained close ties with US President Donald Trump, making his departure significant amid the technology competition between Washington and Beijing.

Also read: Jensen Huang exits Nvidia after 33 years: What the company said about the shock move

Affair controversy preceded resignation

Pressure had been mounting on Huang following reports of extramarital relationships involving the 63-year-old executive, who is married.

The controversy involved Alice Huang, a former executive at Singapore-based cloud company Megaspeed, whom US authorities have concluded was a Chinese intelligence asset, according to reports. The two have been photographed together in Taiwan, Singapore and California and are not related.

Washington has also investigated Megaspeed over suspicions that it helped China obtain advanced AI chips restricted under US export controls. The company was an official Nvidia cloud partner with priority access to its chips. Beijing has denied that Alice Huang was a spy.

Earlier this month, Nvidia's board launched an investigation, led by independent directors and outside legal counsel, into whether Huang had been targeted by a foreign intelligence operation. The board had expressed confidence in him at the time.

The controversy intensified after The New York Times reported on Wednesday that Huang had also had an affair with Kimberly Powell, Nvidia's vice-president of healthcare, who reportedly worked directly under him.

US President Donald Trump said on Sunday that Huang had "done an amazing job for our country" and that the Nvidia chief had told him he had no idea that the Chinese woman he had an affair with was a spy.

(With inputs from agencies)