Nvidia CEO resigns amid spying scandal

The Chief Executive Officer of American technology giant Nvidia, Jensen Huang, has resigned following reports of two extramarital affairs, including one involving a businesswoman suspected by US authorities of spying for China.

BBC reports that the company announced on Thursday that Huang had resigned as president, CEO and member of its board with immediate effect.

Nvidia’s Executive Vice President and Chief Financial Officer, Colette Kress, has been appointed interim CEO while the board searches for a permanent successor.

The announcement followed reports that the company’s board met on Wednesday to consider Huang’s future after revelations of a second alleged affair with an executive at Nvidia.

In a statement published on its website, Nvidia said Kress would retain her position as chief financial officer while serving as interim CEO.

The company also appointed board member Harvey Jones, a former chief executive of technology company Synopsys, as its first-ever board chairman.

Huang’s departure comes amid growing scrutiny over his personal relationships and concerns about possible foreign intelligence activity involving the company.

The New York Times had reported that Huang was involved in a relationship with Alice Huang, a former executive of Singapore-based data centre company Megaspeed International, whom US intelligence officials reportedly suspected of working for China.

Huang later admitted in a message to Nvidia employees that he had been unfaithful to his wife and apologised to her and their children.

In a separate report on Wednesday, The New York Times alleged that he also had an affair with Kimberly Powell, Nvidia’s vice-president of healthcare, who reportedly reported directly to him.

The newspaper, citing sources familiar with the matter, reported that the pair were seen being affectionate at a hotel during an Nvidia conference in March.

Nvidia’s board had earlier launched an independent investigation into reports that Huang was the target of a foreign intelligence operation. It said at the time that it had no reason to believe that the company’s secrets or national security had been compromised.

Reuters reported on Thursday that Nvidia shares fell by more than 10 per cent in pre-market trading following the announcement of Huang’s departure.

Huang co-founded Nvidia in 1993 and led the company for more than three decades, transforming it from a graphics chip maker into a major supplier of processors used in artificial intelligence systems.

The company’s chips have become central to the global AI industry, making Nvidia one of the world’s most valuable technology companies.