Nvidia chief Huang quits amid espionage allegations

Jensen Huang resigned as Nvidia’s chief executive on Thursday after disclosures about an extramarital relationship with a woman suspected of spying for China triggered national security concerns and intensified scrutiny of the artificial intelligence chipmaker.
Nvidia said Huang had stepped down immediately as president, chief executive and board member. The company appointed finance chief Colette Kress interim chief executive and began searching for a permanent successor, considering candidates from inside and outside the business.
The departure ends Huang’s 33-year leadership of the company he co-founded and comes amid an independent board investigation into whether his relationship exposed sensitive information. Nvidia has said it has no reason to believe its confidential information or national security was compromised. The espionage allegations remain unproven publicly.
Huang acknowledged being unfaithful to his wife in a message to employees on Sunday, apologising to his family, colleagues and shareholders. He pledged to cooperate with the investigation and said protecting Nvidia and supporting US national security remained important to him.
The woman at the centre of the allegations, Alice Huang, is a former executive of Singapore-based Megaspeed International, a purchaser of Nvidia technology. She is not related to Jensen Huang. US intelligence officials suspect she supplied information to Beijing, an allegation that has not resulted in a publicly announced criminal conviction.
Further pressure emerged on Wednesday over allegations of a separate relationship involving an Nvidia executive who reported to Huang. Those allegations raised additional questions about corporate governance as directors considered his position. Nvidia’s announcement on Thursday did not explicitly identify either relationship as the reason for his departure.
Investors reacted sharply to the leadership change. Nvidia shares fell about 14 per cent at Thursday’s opening before recovering part of their losses. The company’s market valuation slipped below $4 trillion, while weakness spread across several businesses exposed to artificial intelligence investment.
Harvey C. Jones was appointed Nvidia’s first chairman, separating the board leadership position from the chief executive role. Jones said directors had confidence in Kress and the existing management team and expected customer commitments, operations and product development to continue without interruption.
Kress, who joined Nvidia in September 2013, will retain her chief financial officer responsibilities while serving as interim chief executive. She previously held senior finance positions at Cisco and Microsoft. Her appointment gives directors an experienced internal executive to oversee the business during the search.
Congressional scrutiny will continue despite Huang’s resignation. Brian Mast, chairman of the US House Foreign Affairs Committee, said lawmakers still wanted to question Huang about his dealings with Alice Huang and the safeguards Nvidia maintained against foreign intelligence operations. Mast indicated that a subpoena could be issued if necessary.
President Donald Trump said the Federal Bureau of Investigation was examining the matter. Separately, senators Elizabeth Warren and Chris Coons asked federal agencies and the White House to preserve records concerning Nvidia chip exports to China and the reported intelligence operation. Their letter requested confirmation of preservation instructions by November 17.
The affair allegations have also prompted shareholder litigation. A proposed class action filed in federal court in California accuses Nvidia and Huang of misleading investors by failing to disclose his relationship and associated security risks. The allegations in that lawsuit have not been established by a court.
China has denied attempting to entrap Huang. Singaporean authorities said they had questioned Alice Huang and confiscated her passport during an investigation involving Megaspeed. They said evidence was insufficient to establish that she had committed a crime, although they suspected she had supplied inaccurate information about her position at the company and barred her return.
Megaspeed said it took US export controls seriously and was cooperating with the Commerce Department’s Bureau of Industry and Security. It has engaged a US law firm to examine its chip inventory and verify compliance procedures. The company has denied wrongdoing involving shipments of restricted processors to China.
Nvidia is scheduled to release its third-quarter fiscal 2027 results on November 17, with an earnings call planned for the same day. The company said the timetable remained unchanged following the management transition. The results will provide the first scheduled financial update under Kress, who has overseen Nvidia’s finance operations through the rapid expansion of its artificial intelligence business and its international customer base.