‘AI Emperor’ Jensen Huang Resigns in Disgrace... NVIDIA Shares Plunge 15% Early in Trading

【Financial News correspondent Lee Byeong-cheol in New York】 Artificial intelligence (AI) chip market leader Jensen Huang, NVIDIA’s chief executive officer (CEO), has finally resigned following an affair scandal involving a woman suspected of being a Chinese spy. The “AI emperor,” who co-founded NVIDIA 33 years ago and built it into a global company with a market capitalization of $4 trillion, is leaving in disgrace amid a personal scandal and national security controversy, with repercussions expected across the global AI industry.
On the 12th (local time), NVIDIA announced that Huang would resign immediately. Chief Financial Officer (CFO) Colette Kress will serve as interim CEO until a successor is chosen. NVIDIA shares fell 14% at the start of trading.
NVIDIA also appointed Harvey Jones, a longtime board member, as its first board chairman.
In a statement, Chairman Jones said, “The board has full confidence in Kress and the management team,” adding, “We expect the company’s operations, commitments to customers, and product development roadmap to continue without interruption.” The announcement did not include a statement from Huang.
Huang’s departure came just four days after his extramarital relationship with a woman suspected of having ties to Chinese intelligence agencies came to light.
In an email to employees on the 8th, Huang admitted to the extramarital relationship and apologized, saying, “I was not faithful to my wife.” The woman was Alice Huang, who had worked for Singaporean company Megaspeed International. U.S. intelligence officials are reportedly suspicious that she may have ties to Chinese intelligence agencies.
The controversy did not end there. The New York Times (NYT) reported on the 11th that Huang had also had a separate extramarital relationship with Kimberly Powell, a vice president in NVIDIA’s healthcare division. After a second affair allegation surfaced, NVIDIA’s board held an emergency meeting to discuss Huang’s future and the company’s future.
The case in particular grew beyond a private matter into a U.S. national security issue. Questions were raised about whether the company knew that Singaporean and Malaysian firms were circumventing U.S. semiconductor export controls to obtain NVIDIA technology.
Huang denied allegations that he had compromised national security or company secrets. However, on the 10th, NVIDIA’s board retained the major U.S. law firm Wachtell Lipton to begin an independent investigation into the allegations.




[email protected] Correspondent Lee Byeong-cheol Reporter