Nvidia CEO Jensen Huang steps down amid spy scandal and market loss

What the report says

Nvidia has removed co-founder and chief executive Jensen Huang after a week of turmoil tied to reported personal relationships and an alleged espionage case, according to Al Jazeera. The company, whose chips are central to the fast-growing AI industry, has also seen its market value fall by more than $600bn this week, with shares sliding sharply in premarket trading on Thursday.

Al Jazeera reported that Nvidia’s board met on Wednesday night and then appointed chief financial officer Colette Kress as interim CEO. The company is said to be facing scrutiny from the FBI, the US Congress and its own internal investigators, alongside a shareholder class-action lawsuit. The investigation reportedly centers on Huang’s relationship with a suspected Chinese intelligence asset identified by the outlet as Alice Huang, a former executive at Singapore-based Megaspeed, which is described as Nvidia’s main business partner in Southeast Asia.

The article says the allegations have raised US national security concerns because Washington restricts advanced chip sales to China. It also notes that Huang had been a prominent advocate for easing export limits and that he is one of Nvidia’s largest individual shareholders. Separately, the report says the board was also considering information about another relationship involving a Nvidia vice president who reported to him. Reuters, as cited by Al Jazeera, reported that Nvidia stock had fallen to a 14-year low amid the scandal.