Nvidia's interim CEO Colette Kress's Israel link and how she challenged Jensen Huang
Unlike Huang, whose background is in electrical engineering and chip design, Kress comes from a finance background
For much of her 13 years at Nvidia, Colette Kress has been responsible for overseeing the finances of one of the world’s most valuable technology companies. But her time at the US chipmaker has also involved challenging some of the biggest decisions made by its co-founder and former CEO, Jensen Huang.
Now serving as Nvidia’s interim CEO, Kress has come under the spotlight following revelations about her disagreements with Huang, including a reported confrontation in which he called her a “deer in the headlights”.
When Kress challenged Jensen Huang
According to a report in The Wall Street Journal, Huang interrupted Kress during an internal meeting with senior finance executives in August, describing her as a “deer in the headlights” while questioning her ability to help him make strategic decisions.
The disagreement reportedly stemmed from Nvidia’s increasingly aggressive financial commitments to companies involved in the AI infrastructure business.
Kress and her finance team had raised concerns about the risks of extending billions of dollars in financial guarantees to companies that could not afford Nvidia’s expensive chips. These arrangements were intended to help such companies purchase Nvidia hardware and become long-term customers.
One such proposal involved Nvidia potentially providing up to USD 250 billion in financial support for an OpenAI data centre project in Ohio. The proposed commitment was subsequently scaled back to less than USD 120 billion, according to the report.
The disagreements also reportedly extended to Nvidia’s sales executives, with Kress’s finance team questioning the risks associated with some of the company’s financing arrangements.
What is Colette Kress’ Israel connection?
Kress has also been closely associated with Nvidia’s expanding operations in Israel, which became a significant part of the company’s business following its 2019 acquisition of Israeli networking technology company Mellanox Technologies.
In an interview with Israeli business publication Globes in July 2023, Kress said that around 12 per cent of Nvidia’s workforce, approximately 3,200 employees at the time, was based in Israel.
“My day starts with Israel meetings, and only then continues to California,” she said.
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She also spoke about the importance of the Mellanox acquisition, describing it as one of the company’s best acquisitions. The technology strengthened Nvidia’s networking capabilities, allowing it to offer more comprehensive data centre solutions alongside its graphics processing units (GPUs).
The interview also featured her remark that Nvidia saw itself on a par with Israel Aerospace Industries (IAI), Elbit Systems and Rafael Advanced Defense Systems. However, the comparison does not establish any defence partnership between Nvidia and these companies.
Can Colette Kress lead Nvidia?
One of the questions surrounding Kress’s appointment is whether she can provide the kind of technological and strategic leadership associated with Huang.
Unlike Huang, whose background is in electrical engineering and chip design, Kress comes from a finance background. Her expertise has largely been in financial management, capital allocation and overseeing the company’s finances during its extraordinary expansion.
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Her appointment is, however, interim. In its November 12 announcement, Nvidia said its board would initiate a search for a permanent CEO, considering both internal and external candidates.
The board expressed confidence in Kress, noting that she had a deep understanding of the company’s business, customers, operations and financial position.
Whether she eventually gets the permanent position remains to be seen.