Nvidia’s AI Empire Faces Its First Test Without Jensen Huang
Nvidia’s AI Empire Faces Its First Test Without Jensen Huang
Over the weekend, Jensen Huang acknowledged being unfaithful, and Nvidia said it was investigating whether he had been targeted in a foreign intelligence effort. Reports linked one relationship to Alice Huang, whom U.S. officials suspect of working for China; Beijing has rejected the espionage allegations. On Wednesday, reports of a second relationship—with an Nvidia executive who reported to Huang—intensified pressure on the board, which met to consider his future.
On Thursday, the board accepted Huang’s resignation, ending his 33-year run at the company he co-founded, and named CFO Colette Kress interim CEO while it searches for a permanent successor. Kress said Nvidia’s “strength has always come from its people” and pledged to build on the foundation Huang created. Board chair Harvey Jones said operations, customer commitments and the product roadmap should continue “without interruption.”
That assurance faces a structural test. Huang had about 60 direct reports and no clear heir was in place, while governance observers questioned whether the board had provided adequate oversight. Wharton professor Michael Useem said the board should already have had “a slate of possible successors.”
Markets reacted sharply: Nvidia shares fell more than 13% after the announcement, adding to a steep recent slide. Yet some analysts separate the leadership crisis from demand for the company’s chips. Morningstar’s Brian Colello said the turmoil had not altered its forecasts for strong demand, while Chinese Foreign Ministry spokesperson Mao Ning accused the U.S. of fabricating “so-called espionage narratives” to justify technology restrictions.
The departure also drew tributes from tech leaders. Perplexity CEO Aravind Srinivas thanked Huang for “33 years of bold leadership,” while Elon Musk shared a post calling it “a sad day for NVIDIA, developers, America, and all humanity.” Nvidia’s next test is whether those customers, investors and partners can keep their confidence in the company without its most influential figure.
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