Nvidia Ousts CEO Jensen Huang; CFO Colette Kress Named Interim Leader
Nvidia's board removed Jensen Huang as CEO, appointing CFO Colette Kress as interim. The move sparks fears over AI supply chain stability and regulatory probes.
U.S. chipmaker Nvidia announced on Thursday that it has ousted Chief Executive Officer and Chairman Jensen Huang. This decision marks a dramatic leadership change at one of the world's most valuable companies, triggering severe concerns about the stability of the artificial intelligence infrastructure supply chain.
According to reports, Nvidia's Chief Financial Officer, Colette Kress, will serve as interim CEO while the board conducts a search for both internal and external permanent successors. Huang will also leave the board, with his chairmanship replaced by Harvey Jones, a director since Nvidia's founding in 1993 who previously ran chip design company Synopsys.
The ouster came four days after Huang admitted to an affair with a suspected Chinese spy, following a New York Times report of another affair with a subordinate. He is now subject to investigations by the board, Congressional leaders, and the U.S. Department of Justice. Reports suggest these probes involve allegations that Nvidia sold advanced chips to banned Chinese buyers through a Singaporean front company, intensifying Washington's scrutiny of export control enforcement.
Market reaction was sharp. Nvidia shares fell as much as 7% on Thursday, extending losses since the scandal broke. Neocloud firms like Nebius and CoreWeave, which rely on Nvidia for AI compute leasing, saw shares drop 19% and 9% respectively, while competitor Alphabet rose slightly. Analysts note that Huang's personal credibility underpinned billions in customer financing and AI investments, creating significant 'key-man risk' upon his sudden departure.