Business & Finance

Nvidia CEO Jensen Huang Departs Amid Scandal, CFO Steps In as Interim Leader

By Yashraj Sharma

Nvidia CEO Jensen Huang, the 63‑year‑old cofounder, was forced out of the company and its board after a series of alleged extramarital affairs came to light. The New York Times reported on October 29 that U.S. intelligence agencies suspected a Chinese businesswoman linked to Singapore‑based AI infrastructure firm Megaspeed International, Alice Huang, had been recruited by China’s Ministry of State Security to gather information from Nvidia’s Huang. The two were said to have been in an intimate relationship, a claim later confirmed by Huang in an internal memo in which he apologized for his actions.

The affair allegations also raised concerns about business ties. Megaspeed had purchased more than $4.8 billion of Nvidia chips over roughly two years, and Alice Huang reportedly facilitated at least $7.5 billion in Nvidia chip shipments to Chinese firms, potentially violating U.S. export controls. A second alleged affair involved Nvidia vice president of healthcare Kimberly Powell, and a third was reported by Reuters involving another Nvidia employee.

Nvidia dominates the market for advanced AI chips, controlling nearly 90 percent of the sector. Its hardware powers AI data centers for tech giants such as Microsoft, Google, Amazon and Meta. The company’s importance to the U.S. economy is underscored by the fact that AI and tech companies account for about 40 percent of U.S. stock‑market valuations.

Following Huang’s departure, CFO Colette Kress has taken over as interim CEO while the board searches for a permanent successor. Nvidia’s annual review highlighted its reliance on key personnel and the need for effective succession planning.

The scandal has had a noticeable impact on markets. Nvidia shares fell about 11 percent this week, with the company on track for its longest streak of weekly losses since October 2012. Nasdaq and S&P 500 futures dipped 0.4 percent and 0.15 percent, respectively. Shares of Nvidia’s customers, such as South Korea’s Naver, also fell more than 5 percent.

U.S. officials have expressed concern over the potential national‑security implications of Nvidia’s advanced chips. Washington has restricted Nvidia from selling chips to China, a policy that Huang had long opposed. Beijing has denied allegations that Alice Huang is a Chinese spy, calling them “baseless.”

Investors in China have reacted to the developments by selling shares in AI‑linked companies. Shares in Z.AI fell more than 10 percent in Hong Kong, and shares in rival MiniMax hit record lows.

Analysts note that Huang’s departure could create a pause in Nvidia’s willingness and ability to pursue deals in the near term, even if a new leader maintains a similar approach. The company’s future leadership search remains underway, with potential candidates being considered from both within and outside the organization.