13 minutes ago
Key events
Opening summary
Jensen Huang is expected to testify before the US Congress in the next fortnight, after the Nvidia CEO stepped down from the multi-trillion dollar company on Thursday, plunging the chipmaker into crisis and sending shock waves across the global AI industry.
House foreign affairs chair Brian Mast, a Florida Republican, told reporters on Thursday that congressional staff spoke to Nvidia on Wednesday night about a date and location for Huang’s testimony.
Mast and two other leading House Republicans asked Huang last week to brief them behind closed doors about his relationship with Alice Huang, an alleged Chinese spy.
Huang has denied any knowledge that Alice Huang allegedly worked for the Chinese government. The pair were seen together around the world, dining in restaurants and attending meetings, over the past few years.
It has been reported that Jensen Huang also had an intimate relationship with two Nvidia employees, which added to the pressure on Huang, with the company’s board calling a meeting late on Wednesday to discuss the chief executive’s future.
Huang’s exit could have far-reaching consequences for US chip export policy and the broader AI ecosystem, given the ex-CEO’s push to preserve access to the Chinese market as well as his close ties with US president Donald Trump.
Jensen Huang resigned on Thursday as chief executive of Nvidia after reports of extramarital affairs with an alleged Chinese spy and a company employee, bookending a stunning fall from grace of one of the leading figures of the AI boom. He will be replaced on an interim basis by Nvidia’s chief financial officer, Colette Kress, until a successor is named.
Shares in the chipmaker plunged by 14% when Wall Street opened, after Huang’s departure was announced and ricocheted through the global economy, before recovering to finish more than 4% lower as uncertainty about Nvidia’s future leadership troubled investors eased somewhat.
US House Speaker Mike Johnson said there was growing consensus in Congress on limiting chip exports to China after the scandal. Lawmakers from both parties have called for tougher restrictions on China’s access to advanced AI chips, threatening access to chips that underpin China’s surging AI development.
On Thursday came reports that the ousted former CEO had an intimate relationship with a second employee. The revelation, reported by Reuters, follows allegations of two other extramarital affairs that led to Jensen Huang’s dramatic resignation – one with Alice Huang, an alleged Chinese spy, and another with Kimberly Powell, Nvidia’s vice-president of health care. Powell has been approached for comment. On Sunday, Jensen Huang admitted he had been unfaithful to his wife, Lori, without naming anyone involved.
A statement from Nvidia’s board of directors confirming Huang’s departure did not mention the spying scandal and personal conduct revelations, instead paying tribute to Huang’s “profound” contributions to the company he co-founded. “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 statement said. It added that Huang had resigned as chief executive, president and Nvidia board member “effective immediately”.
Donald Trump, who had defended Huang at first as the scandal threatened to overwhelm Nvidia co-founder, quickly moved on to potential successors on Thursday, posting on social media that he should be replaced by Tim Cook, Apple’s former chief executive and current executive chair. “NOW THAT Nvidia CEO JENSEN HUANG, who has done a fantastic job, has resigned, there is only one man to take his place – TIM COOK of Apple,” Trump wrote, adding: “A Legend replaces a Legend!” Nvidia’s board directors said it would consider internal and external candidates for the chief executive role, with Cook featuring among potential runners and riders before Trump’s intervention. Rene Haas, the chief executive of Arm Holdings, a UK-based chipmaker, has also been mooted, along with Lisa Su, the chief executive of the chipmaker AMD.
