Jensen Huang steps down as Nvidia CEO; ‘had affair with a second employee’
Nvidia appoints fiancé chief Colette Kress as interim CEO while looking for a successor
Former Nvidia chief executive Jensen Huang had an intimate relationship with a second employee. The revelation has come to light in a report by Reuters. The development comes after reports of two other extramarital affairs that led to his resignation on Thursday (November 12).
What has been revealed?
The two women involved in the earlier reports were identified as Alice Huang, whom US intelligence suspects of being a Chinese spy, and Kimberly Powell, Nvidia's vice president of health care.
Also Read: Nvidia CEO Jensen Huang resigns, Colette Kress named interim chief executive
Reuters has not identified the second employee, stating that attempts to contact her were unsuccessful and Nvidia declined to comment. The report further stated that Jensen Huang, Powell and a representative for Nvidia's board did not respond to requests for comment, adding Alice Huang could not be reached.
Jensen Huang acknowledged having an affair in a statement issued on November 8, following reports about his relationship with Alice Huang. He did not mention her by name.
Huang quits, search for successor begins
The 63-year-old executive, who is married, faced mounting pressure to leave the company after reports of his affair with Alice Huang. He resigned from the company on November 12 as its president, CEO and a member of the board with immediate effect. Nvidia's board has appointed finance chief Colette Kress as interim CEO while it looks for a successor. Both internal and external candidates are being considered.
Also Read: Who could replace Jensen Huang as Nvidia CEO? The names in the frame
Earlier this month, the board began an inquiry led by independent directors and assisted by outside legal counsel. The inquiry concerns whether Jensen Huang had been targeted by a foreign intelligence operation. The board had expressed confidence in him at the time.
His departure could affect the AI sector, where Nvidia has helped create a market around its chips. The company has used its financial strength to arrange deals that make it easier for buyers to purchase its products. It has also invested in cloud computing companies and AI laboratories, helping create an industry around artificial intelligence.
Nvidia shares fall, Trump reportedly calls Huang
Nvidia shares fell 5.5% in active trading on Thursday (November 12). The stock has lost more than 30% since reaching its peak in early October.
Meanwhile, a report by The New York Times said US President Donald Trump had personally called Jensen Huang on Tuesday (November 10), days before Nvidia announced his departure. Trump encouraged him to resist attempts to remove him as the company's chief, the report stated.
The call came amid growing scrutiny over the espionage allegations. Huang had become one of Trump's prominent allies and an adviser on artificial intelligence. The report described the conversation as a sign of the President's continued backing for the former Nvidia chief.