Jensen Huang resigns as Nvidia CEO, with Congress seeking answers

Jensen Huang resigned as Nvidia’s chief executive on 12 November, effective immediately, the US chipmaker said. The company gave no reason, but the move follows two weeks of reports about Huang’s relationship with a mainland Chinese businesswoman, Alice Huang (no relation), whom US intelligence officials believe passed information to Beijing, according to the New York Times. China rejects the allegation, and she has not publicly commented.

What Nvidia announced?

Nvidia said Huang resigned as president, chief executive and a member of the board. Chief financial officer Colette Kress is interim chief executive and remains CFO. Harvey C. Jones was appointed the board’s first chair. The board is searching for a permanent chief executive and “will consider internal and external candidates”.

[See more: Jensen Huang scandal latest: Trump, Nvidia and Beijing respond]

Jones said the board has “full confidence in Colette and the leadership team”, and Kress said she was “committed to building on the extraordinary foundation Jensen created over the last 33 years”. The release does not mention the independent board inquiry announced on 8 November. Nvidia still plans to report third quarter results on 17 November.

What led to Jensen Huang’s resignation?

The New York Times reported on 29 October that US intelligence officials believed Alice Huang, an executive at Singapore based data centre company Megaspeed, had passed information to Beijing while building a close relationship with Jensen Huang. On 8 November, he told staff in an email: “I was unfaithful to my wife.” He did not name anyone.

On 11 November, the New York Times reported, citing five people who worked at Nvidia, that the company founder also had a relationship with an executive who reports to him. The Wall Street Journal reported that the board was preparing to remove him. On 12 November, Reuters also reported, citing two people familiar with the matter, that he had a relationship with a second Nvidia employee, whom it did not name. Nvidia and Huang had not commented on the reports in the coverage reviewed.

Nvidia shares fell more than 10 percent in early trading on 12 November and closed 4.3 percent lower.

What China and Alice Huang have said

Chinese foreign ministry spokesperson Guo Jiakun said on 9 November: “We responded to that last week. The ‘Chinese spy’ allegation is purely unsubstantiated and directed at smearing China.”

[See more: Alice Huang’s Hong Kong links in focus as Nvidia weighs CEO’s future]

Megaspeed said it had “no evidence of any violations concerning the illicit transfer of chips or any illegal activities”. Alice Huang has not publicly commented, and no charges against her have been reported.

What happens next?

Three House committee chairs had asked Jensen Huang to attend a closed door briefing on 18 November. Representative Brian Mast said Huang indicated he is willing to appear, and Representative John Moolenaar said: “We are in discussions with him right now on a date to come and meet with us.” Moolenaar said the resignation “does change the dynamic” and that the chairs would use their subpoena power if needed. No date has been set, and the format of any appearance has not been confirmed.

President Donald Trump has already named a preferred successor. He wrote on Truth Social that there is “only one man to take his place”, Apple’s former chief executive Tim Cook, adding: “A Legend replaces a Legend!” Apple and Cook did not immediately respond to requests for comment, Reuters reported.