Scandal-hit Nvidia CEO Jensen Huang Quits, Plunging AI Chipmaking Giant Into Turmoil

Jensen Huang resigned as the chief executive, president, and member of the board of Nvidia early Thursday, ending a 33-year tenure at the chipmaking giant amid multiple scandals involving extramarital relationships and national security scrutiny.

The company’s valuation had previously soared to more than $4 trillion amid insatiable demand for its GPU chips.

Source 3 reported that the five-day stock drop is the largest the company has seen since going public 27 years ago.

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

— Post by @shaunmmaguire on X

Brad Gastwirth, an analyst at Circular Technology, said that “Jensen’s combination of technical expertise, strategic vision and industry relationships is nearly impossible to replicate.” Michael Landsberg, chief investment officer at Landsberg Bennett Private Wealth Management, added in a note Thursday that “Jensen Huang’s resignation is the worst case scenario during this entire saga, as he was not just a leader, but a visionary for the company.” Even President Trump stepped into the discussion, backing former Apple CEO Tim Cook and saying, “A Legend replaces a Legend!”

China has denied the allegations, calling them “purely unsubstantiated and directed at smearing China.” Enormous worry arose because American intelligence agents had long suspected Alice Huang of potentially acting as a Chinese asset, raising fears that she might relay confidential data to Beijing.

That would be an honor

— Post by @elonmusk on X

Huang confessed to being unfaithful to his wife of 40 years, Lori Huang, releasing a statement to employees reported by The Sun:

I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry.

Jensen Huang, CEO and Co-Founder

During an annual Nvidia developer conference in March, the two were observed acting affectionately at a hotel, where an onlooker reportedly recorded the scene on video prior to being approached by Huang’s security detail and presented with a nondisclosure agreement. Reuters subsequently reported a third relationship with an additional unnamed employee, citing anonymous sources.

Kress has served as the firm’s CFO since 2013 and spent nearly 25 years in finance roles at tech giants including Cisco and Microsoft, playing an instrumental role in the company’s rapid rise during the AI era.

“I believe deeply in this company and in its future,” Kress wrote in her first email to employees as interim CEO, adding gratitude for the resilience, professionalism, and dedication of the staff during an extraordinarily difficult period.

Nvidia stated in its board announcement on Thursday that Jensen Huang resigned as President, Chief Executive Officer, and a member of the Board, effective immediately, acknowledging that “Jensen’s contributions to Nvidia are profound.” Multiple Washington officials have called for greater scrutiny of Nvidia and for Huang to testify, while the company affirmed it has “no reason to believe that either national security or Nvidia secrets were compromised” and pledged an independent inquiry to look at all available information.

Earlier coverage: Nvidia's Jensen Huang Admits Affair, Board Launches Inquiry

More on Nvidia: Nvidia Unveils Platform to Stop AI Agents from Misbehaving · Microsoft and Nvidia Reveal Surface Laptop Ultra and RTX Spark AI Hardware

More on Jensen Huang