Jensen Huang is stepping down as CEO of Nvidia, the chipmaker he transformed from a gaming supplier into a $4 trillion behemoth at the heart of the artificial intelligence boom.
His resignation, announced by the company, follows revelations that he had affairs with Alice Huang, an alleged Chinese spy, and a company executive.
The discovery sparked investigations into whether the relationship with Ms. Huang compromised national security. Internal company pressure mounted after revelations he had a second affair with an Nvidia executive, Kimberly Powell, who reported to him.
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The Nvidia board said Colette Kress, an executive vice president and chief financial officer at Nvidia, will serve as interim CEO. The board said it will search for a permanent CEO, considering internal and external candidates.
President Trump said Tim Cook, the former CEO of Apple, would be a great candidate.
“NOW THAT Nvidia CEO JENSEN HUANG, who has done a fantastic job, has resigned, there is only one man to take his place - TIM COOK of Apple. A Legend replaces a Legend!” Mr. Trump wrote on Truth Social.
SEE ALSO: Who is Collette Kress? The Nvidia CFO takes over following Jensen Huang’s resignation
Ms. Kress said she is “committed to building on the extraordinary foundation Jensen created over the last 33 years.”
“We will continue advancing the work that has made Nvidia a leader in accelerated computing and AI, and execute on the opportunities ahead. Our focus remains on serving our customers, partners, developers and shareholders,” she said.
The company’s release said Mr. Huang, 63, had a “profound” impact and thanked him for his “immeasurable contributions to the company and the industry.”
Nvidia shares fell nearly 12% on the news, and stocks were down overall given the chipmaker’s prominent role in AI and the overall economy.
Mr. Huang, wearing his trademark leather jacket, had cultivated a close relationship with President Trump as part of negotiations around potential sales of Nvidia products to China.
China is the U.S.’ main rival in the AI race, so American officials are wary of giving Chinese companies access to advanced Nvidia chips.
U.S. lawmakers are probing whether Mr. Huang’s relationship with Ms. Huang led to geopolitical problems.
Ms. Huang is a major shareholder in a Singapore-based company, Megaspeed, so lawmakers want to know if she used the company to divert Nvidia products to China.
Megaspeed rejected allegations of illegal shipments to China and said Thursday it was committed to “working constructively and transparently” with U.S. investigators.
Megaspeed said it already cooperated with the U.S. Department of Commerce’s Bureau of Industry and Security and was ready to work with any other relevant bodies.
“Megaspeed welcomes appropriate government scrutiny and is committed to demonstrating through concrete actions that it operates responsibly, transparently, and in accordance with applicable U.S. laws,” the company said.
Last month, Mr. Trump honored Mr. Huang and other tech leaders with medals honoring achievements in science and technology.
Mr. Trump backed Mr. Huang after the affair revelations surfaced on Sunday.
He called Mr. Huang a “high-quality person” and said he wanted him to stay at the helm of Nvidia, considered the second-most valuable company in the world behind Apple.
“He said I had no idea that she was a spy, and I really, and I really believe him,” Mr. Trump said Monday. “I hope there’s no problem.”
Nvidia said it plans to report fiscal third-quarter financial results on Tuesday, as it picks up the pieces following Mr. Huang’s ouster.
Its interim leader, Ms. Kress, has been Nvidia’s CFO since September 2013.
Before joining the company, she spent nearly 25 years in technology finance roles, including as senior vice president and CFO of Cisco’s Business Technology and Operations Finance organization, 13 years at Microsoft and time at Texas Instruments.
She holds a bachelor’s degree in finance from the University of Arizona and an MBA from Southern Methodist University’s Cox School of Business.
“Colette has helped lead Nvidia through a period of extraordinary growth and has a deep understanding of our business, customers, operations and financial position,” Harvey Jones, chair of the Nvidia Board of Directors, said in a statement. “She is supported by an experienced leadership team that has been instrumental in executing Nvidia’s strategy and advancing its technology roadmap. The Board has full confidence in Colette and the leadership team, and we expect the company’s operations, customer commitments and product roadmap to continue without interruption.”
• Vaughn Cockayne and Mary McCue Bell contributed to this report.
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