Nvidia CEO Jensen Huang resigns as Colette Kress takes interim charge
The chipmaker's longtime head stepped down following reports of extramarital affairs and national security concerns involving a Chinese businesswoman.
Nvidia CEO Jensen Huang resigned on Thursday following reports of extramarital affairs that raised national security concerns, according to The Federal. The company has appointed Colette Kress, the current executive vice president and chief financial officer, as interim chief executive.
Huang's resignation follows allegations regarding an affair with Alice Huang, a former executive at Singapore-based Megaspeed International who was suspected of being a Chinese government agent. Media reports also indicated Huang had another affair with an Nvidia employee who reported to him. Nvidia stated it has no reason to believe its secrets or national security were compromised, though an inquiry is underway.
The board of directors has named Harvey C. Jones as the company's first chairman. Following the news, Nvidia shares fell 14 per cent at the opening bell on Thursday, while the Nasdaq declined 1.5 per cent.
The board is now looking for a permanent CEO and will evaluate both internal and external options.
Kress has served as Nvidia's finance chief since 2013 and previously held roles at Cisco and Microsoft. In a statement, Kress said the company's strength comes from its people and expressed commitment to building on the foundation Huang created over 33 years.
Megaspeed chairman and CEO Tan Yong Pong, also known as James Tan, said the company is committed to working transparently with the US government. Singaporean authorities previously questioned Alice Huang and confiscated her passport last year during an investigation into Megaspeed.