Nvidia is facing an unusual leadership vacuum after Jensen Huang stepped down as its president and CEO with immediate effect on Thursday. The company has appointed its long-time finance chief Colette Kress as interim CEO, but has yet to find a permanent replacement for the man who led the chipmaker for more than three decades.In an announcement, Nvidia said its board of directors would begin searching for a new CEO and consider both internal and external candidates.
Kress will continue to serve as the company's executive vice president and chief financial officer alongside her interim role until a permanent appointment is made.The announcement comes after days of uncertainty over Huang's position at the world's most valuable chipmaker. His departure follows reports of multiple extramarital relationships, including one involving a businesswoman suspected by US intelligence officials of having links to Chinese intelligence.Nvidia has not given a specific reason for Huang's resignation.
However, the developments surrounding his personal relationships and a separate investigation into possible national security concerns had put his position under increasing scrutiny. Why Jensen Huang left NvidiaThe controversy began after reports emerged about Huang's relationship with Alice Huang, a former executive at Singapore-based Megaspeed International.
According to reports cited by Reuters, US intelligence officials suspected that Alice Huang was working with Chinese intelligence and had allegedly passed information to Beijing.The allegations raised concerns because of Megaspeed's business dealings involving Nvidia's advanced AI chips. The company had also faced allegations of illegally diverting Nvidia processors to China, despite US export restrictions.
Nvidia's board subsequently announced an independent investigation into reports that its founder had been targeted by a foreign intelligence operation. The company appointed law firm Wachtell, Lipton, Rosen & Katz to oversee the inquiry.Nvidia said at the time that it had no reason to believe its trade secrets or national security had been compromised, but that the investigation would examine all available information.The situation became more complicated on Wednesday after The New York Times reported that Huang had also been involved in an extramarital relationship with Kimberly Powell, an Nvidia executive who reported to him.
The Associated Press said it could not independently verify the reports.Huang had earlier acknowledged being unfaithful to his wife in a message to Nvidia employees, taking responsibility without sharing details of the relationship. Meanwhile, US lawmakers had also sought answers over the national security concerns surrounding the allegations.Reuters reported that Nvidia's board met on Wednesday to discuss Huang's future.
This came just days after the board had expressed confidence in him and his leadership team.Who will replace Jensen Huang as Nvidia CEO?While Kress will handle the company's leadership responsibilities for now, finding someone to permanently take over from Huang could be a difficult task.Bloomberg had reported that Nvidia was working with an outside firm to identify potential CEO candidates. The search comes as the company looks for someone who can take charge of its business, technology plans and relationships with major customers and partners.Huang co-founded Nvidia in 1993 and spent 33 years turning it from a graphics chipmaker into a major force in artificial intelligence.
His role went beyond running the company's operations, with his technical knowledge and close involvement in business decisions making him central to Nvidia's growth.Kress, meanwhile, has been with Nvidia since September 2013. Before joining the company, she spent nearly 25 years working in finance roles at technology companies, including Cisco and Microsoft.
She has led Nvidia's finance organisation through a period of rapid expansion.The company has also appointed Harvey C. Jones as its first-ever chairman of the board.
Jones, an entrepreneur and investor, previously served as CEO and executive chairman of Synopsys. In her first message to employees after taking charge, Kress said she was committed to continuing the work started by Huang."Nvidia's strength has always come from its people, and together with our leadership team, I am committed to building on the extraordinary foundation Jensen created over the last 33 years," she said.Kress also sent an internal note to employees, acknowledging that the company had gone through a difficult period and asking them to remain focused on its work.
She said Nvidia would hold an employee meeting on November 18 to discuss its future.- Ends