Nvidia’s CEO Jensen Huang resigns

Nvidia’s Chief Executive Officer Jensen Huang has given up his position at the company he co-founded 33 years ago and helped build into a $4 trillion corporation at the heart of the artificial intelligence boom.

He will be replaced at the chipmaker by Colette Kress, the chief financial officer (CFO), as interim CEO.

The company disclosed its board’s decision in a post on its website on Thursday, saying Ms Kress would retain her position as executive vice president and CFO while serving as interim chief executive until a permanent successor is appointed.

The board said it had begun searching for a permanent CEO and will consider both internal and external candidates.

The leadership change followed reports of an affair involving Mr Huang, an alleged Chinese spy, Alice Huang, and a company employee named Kimberly Powell.

Mr Huang acknowledged being unfaithful to his wife in an email to Nvidia’s employees on 8 November.

Nvidia’s board subsequently announced an independent investigation into reports that he had been targeted by a foreign intelligence effort.

The board said at the time it had no reason to believe Nvidia’s trade secrets or US national security had been compromised, but that its inquiry would examine available information.

The controversy also attracted investor attention, with Nvidia’s shares coming under pressure amid concerns about corporate governance and the potential implications of a leadership change.

“Jensen’s contributions to Nvidia are profound. Nvidia is one of the most consequential technology companies in the world. The board and the company thank Jensen for his immeasurable contributions to the company and the industry,” the company said in the Thursday statement.

Mr Huang co-founded Nvidia alongside Chris Malachowsky and Curtis Priem in April 1993, and has led the company as its chief executive since its establishment.

Ms Kress joined Nvidia in September 2013 and has led its finance organisation, contributing to the company’s growth and development.

Before joining the chipmaker, she spent nearly 25 years in finance roles at technology companies, including Cisco and Microsoft.

In her first statement as interim CEO, Ms Kress said the company will build on the foundation established by Mr Huang over the past 33 years.

“Nvidia’s strength has always come from its people, and together with our leadership team, I am committed to building on the extraordinary foundation Jensen created over the last 33 years,” she said.

She added that the company will continue advancing its work in accelerated computing and artificial intelligence while focusing on customers, partners, developers and shareholders.

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The board also appointed Harvey Jones as its first-ever chair. Mr Jones has more than 30 years of experience as an entrepreneur, technology executive and venture investor.

He previously served as chief executive and executive chairman of Synopsys.

Commenting on the appointment, the board chair, Mr Jones, said Ms Kress has helped lead NVIDIA through a period of significant growth and has a deep understanding of its business, customers, operations and financial position.

He stated that the board has confidence in her and the leadership team, adding that it expects the company’s operations, customer commitments and product roadmap to continue without interruption.

The company, listed on the Nasdaq under the ticker NVDA, is a major supplier of processors used in artificial intelligence systems and accelerated computing.