The key facts

  • Jensen Huang, who founded Nvidia in 1993, left the posts of president, CEO, and board member with immediate effect
  • Finance chief Colette Kress was appointed interim chief executive officer while retaining her previous role
  • Nvidia shares fell more than 11% in premarket trading, with the company's market capitalization losing over $300 billion since Friday

Nvidia Founder's Resignation

Jensen Huang, who co-founded Nvidia in 1993, stepped down from the posts of president, chief executive officer, and member of the board of directors with immediate effect. The company confirmed the resignation on Thursday, and in a filing with the U.S. Securities and Exchange Commission stated that the board of directors accepted it on Wednesday. In an official statement, Nvidia thanked Huang for his contribution to the company and the industry, calling it 'immeasurable,' but did not give a reason for his departure.

Who Will Lead the Company

Colette Kress, who holds the posts of chief financial officer and executive vice president, was appointed interim chief executive officer; she will retain her previous duties while the board of directors considers internal and external candidates for a permanent replacement. Kress has worked at Nvidia since 2013 and said she will continue the work that Huang built over 33 years. Harvey C. Jones — a managing partner at Square Wave Ventures and former head of Synopsys, who has served on Nvidia's board since 1993 — became the first chairman of the board in the company's history. According to him, operations, commitments to customers, and the product roadmap will continue without disruption.

Investigation and Market Reaction

The resignation followed reports of Huang's romantic relationship with a suspected Chinese agent, which, according to TechCrunch's assessment, triggered a U.S. national security crisis. On November 8, the board of directors announced an independent investigation: at that time, directors expressed confidence in Huang and stated that they had no reason to believe that U.S. national security or the company's secrets had been compromised. The same day, Huang, in an address to employees, admitted infidelity to his wife and promised to cooperate with the review. On Tuesday, the independent directors retained former acting U.S. Attorney June H. Kim and the law firm Wachtell, Lipton, Rosen & Katz to conduct the investigation. The market reacted sharply: on Thursday, Nvidia shares fell more than 11% in premarket trading, and since Friday the company's capitalization has lost over $300 billion.