Nvidia CEO Jensen Huang Resigns Amid Scandal, Colette Kress Takes Over

Jensen Huang resigned as chief executive of Nvidia on Thursday. The departure comes after reports detailed his personal relationships, one of which drew scrutiny from U.S. intelligence agencies. Colette Kress, who has served as the company’s financial officer since 2013, was named the interim CEO effective immediately.

Nvidia shares dropped more than 4 percent in the closing market trade on Thursday. The company, which makes the high-end chips that power much of the current artificial intelligence boom, has not announced a timeline for hiring a permanent replacement. It stated that it is considering both internal and external candidates for the role.

The board of directors also appointed Harvey C. Jones as the company’s first chairman. Kress, who previously worked at Cisco, Microsoft, and Texas Instruments, said in a statement that Nvidia’s strength lies in its people. She expressed her commitment to building on the foundation Huang established over the 33 years he led the firm.

The resignation followed a weekend in which Huang apologized to employees for being unfaithful to his wife. He said his actions hurt his family and that his colleagues deserved better. The apology came shortly after Nvidia announced it was investigating whether Huang was the target of a foreign intelligence operation. The company had initially planned to keep him in charge while the review continued, but pressure mounted after reports indicated he was also involved with an Nvidia executive who reported directly to him.

The New York Times reported that U.S. agencies found Huang had a close relationship with Alice Huang, an executive at Singapore-based Megaspeed International. Intelligence officials suspected she was passing information to Beijing, a claim the Chinese government denies. Reuters later reported that Huang also maintained a relationship with a second employee at Nvidia.

President Donald Trump, who has maintained a close relationship with Huang, said the former CEO did a fantastic job. On his Truth Social platform, Trump recommended Tim Cook, the former Apple CEO, for the job. He wrote, “There is only one man who can take his place. A legend replaces a legend!” Democratic leaders criticized the comment, with House Minority Leader Hakeem Jeffries arguing that the administration was favoring large corporations over the American working class.

Megaspeed International stated that it takes its obligation to comply with U.S. export control laws seriously. Singaporean authorities had questioned Alice Huang and confiscated her passport last year during an investigation into Megaspeed. They concluded she committed no crime but suspected she had minimized her role in the company. China’s Foreign Ministry called the espionage allegations unfounded and part of a campaign to discredit Beijing.

Stephanie Balaouras, a research director at Forrester, said the transition tests the resilience of the AI infrastructure boom. She noted that if Nvidia stabilizes quickly under new leadership, it will demonstrate the sector's strength. If the company remains under pressure, it may confirm the fragility of the AI bubble.