Jensen Huang has resigned as chief executive of Nvidia, ending a 33-year run at the company he co-founded in 1993 and leaving the world's most valuable chipmaker without a permanent leader just days before it reports quarterly earnings.
The exit followed a week of revelations about the 63-year-old's personal life, including his admission on November 8 of an affair and reports that he was involved with an employee who reports to him.
Chief financial officer Colette Kress has been named interim CEO, and the board is searching for a successor with a leadership vacuum, an internal probe into possible foreign intelligence targeting, and a share price down more than 30% from its early October peak.
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Here are five things you need to know.
1. Huang Exits After Affair Revelations
Huang resigned on Thursday, days after admitting to an affair in a November 8 statement. The relationship was with Alice Huang, whom US intelligence officials suspect of working for China.
The New York Times followed with a report on a relationship with Kimberly Powell, Nvidia's vice president of health care, and Reuters later reported a second Nvidia employee. Nvidia said Huang, who co-founded the company in 1993, will not work with it in any capacity.
2. Interim Charge
The board has named Colette Kress, Nvidia's chief financial officer, as interim CEO, according to the company's regulatory filing. Kress said she is committed to building on the foundation Huang created over 33 years.
3. What Kress Inherits
She takes over at a delicate moment. Nvidia reports third-quarter results on Tuesday, November 17, the first since Huang's exit.
The board has also launched a probe, led by independent directors with outside legal counsel, into whether Huang had been targeted by a foreign intelligence operation, and reports about the diversion of AI chips to Chinese companies have added to the scrutiny.
4. Board Begins Search For A Permanent CEO
With Huang gone, two long-serving executives are emerging as potential successors: Kress and senior engineering executive Ian Buck. Huang never publicly named a successor, but analysts and investors believe the two insiders could be among the strongest contenders.
Reuters reported that Nvidia's board had been due to meet on Wednesday to discuss whether Huang should be removed, following the reports of the alleged affairs.
Huang is deeply associated with Nvidia's identity. The leather-jacket-wearing executive transformed a company known for gaming processors into a dominant force in artificial intelligence, helping it become the world's most valuable company. His larger-than-life presence has made replacing him particularly challenging.
Kress, 59, could offer continuity at a time when investors want stability. She joined Nvidia in 2013 after holding senior positions at Microsoft, Cisco and Texas Instruments. Having served as CFO for 13 years, she regularly shares the stage with Huang on quarterly earnings calls.
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That brings Buck into the picture. The approximately 49-year-old executive joined Nvidia in 2004 and played a key role in developing CUDA, the software platform that has helped build Nvidia's competitive advantage by keeping developers invested in its ecosystem.
He currently oversees AI hardware and software products as head of product for hyperscale AI, and holds a PhD from Stanford University. Market strategist Shay Boloor described him as the strongest long-term internal candidate, citing his contribution to CUDA and Nvidia's hyperscale business.
Other names being discussed include Arm CEO Rene Haas, a former Nvidia executive, and veteran Nvidia executive Jeff Fisher. Huang's two children, who also hold positions at the company, have figured in speculation. Portfolio manager Armina Rosenberg suggested a co-CEO arrangement could be another possibility, pairing Kress's financial experience with Buck's technology leadership.
5. Shares Slide As Uncertainty Weighs
Nvidia shares fell as much as 16% after the announcement, before closing 4.3% lower. Reuters said the stock has shed more than 30% of its value since its early October peak. Uncertainty over Huang's leadership has contributed to a reported $600 billion decline in Nvidia's market value this week.
What Company Said About Jensen
In a statement, Nvidia said Jensen's contributions to company 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.
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