Jensen Huang resigned as chief executive of Nvidia on Thursday stepping down from the chipmaking giant he cofounded in 1993.
Jensen Huang Quits Nvidia Amid Scandal
Huang surrendered his position following revelations of an affair with Alice Huang, a businesswoman suspected by U.S. authorities of acting as an agent for China’s Ministry of State Security. Bloomberg reported that in his final hours as chief executive, Huang swapped his usual drive for defeat, using phrases like “whatever” and “I don’t care” and calling himself a “piece of s—.”
Nvidia shares plummeted 14% after the market opened following the announcement, erasing roughly $546 billion in market capitalization. Through the closing bell for the week, the stock plunged 11%, wiping out $500 billion in value, while the company’s valuation hovered above $4 trillion.
1) Jensen is one of the greatest entrepreneurs of this generation 2) he did something incredibly dumb 3) it was bad for America 4) but my guess is there was no bad intention 5) two mistakes don’t make a right, and I believe Jensen is irreplaceable for America’s AI leadership
Subsequent reporting revealed a second relationship between Huang and Kimberly Powell, a senior executive who ran the company’s health-care business and reported directly to him. Nvidia operated under a corporate structure where Huang maintained 3.6 percent ownership without majority voting power, while overseeing 60 direct reports.
Washington Demands Answers From Nvidia
Lawmakers in Washington moved swiftly to demand answers regarding Nvidia’s compliance with U.S. export controls.
That would be an honor
Congress must demand answers from Mr. Huang and others at Nvidia about how they may have put U.S. national security at risk.
Chuck Schumer, Senate Minority Leader
Intelligence officials are assessing whether the businesswoman used her relationship with Huang to help Beijing bypass U.S. restrictions on advanced artificial intelligence chips. Investigators are examining whether she relayed strategic insights or facilitated the flow of computing power to firms in Southeast Asia supplying Chinese tech companies.
Senator Chris Coons sent letters to administration officials instructing them to preserve communications related to the matter, and Senator Tim Scott called for hearings involving government officials.
Colette Kress Takes Interim Control
Nvidia’s board appointed Colette Kress, who has served as the company’s chief financial officer since 2013, as its interim chief executive. The chipmaker also named Harvey Jones as its first-ever board chair.
In her first message to employees, Kress addressed the turmoil. “The Board, Estaff and I recognize that this has been an extraordinarily difficult period and I want you to know how grateful we are for your resilience, professionalism and continued dedication,” Kress wrote in an email.
Some $NVDA employees are calling for Jensen Huang to return with an internal post drawing over 1,600 comments, including calls to give him a “second chance.” Turns out making your employees millionaires earns you quite a bit of loyalty. pic.twitter.com/A8LwRqDsaq
Earlier coverage: Nvidia Shares Fall 2.01% After Jensen Huang Resigns as CEO
Wow. According to Jensen Huang's biographer, the former Nvidia CEO liked to give the waitstaff huge tips without making a big show of it. https://t.co/7DFzvUJxiS pic.twitter.com/Nijw2eBjsQ
More on Jensen Huang
NYT says Jensen Huang had a relationship Nvidia's vice president of health care. https://t.co/restNfM7wJ
Elon Musk says a petition to reinstate Jensen Huang as $NVDA CEO is underway and that he plans to sign it. That comes as Nvidia employees are already pushing for Jensen’s return. pic.twitter.com/nOur0HR0sD
