Nvidia Chief Executive Officer Jensen Huang has reportedly stepped down following allegations of relationships with a suspected Chinese intelligence operative and an executive at the technology company. The reported development comes as the $4.2 trillion technology giant faces a sharp decline in market value, losing more than $600 billion this week amid concerns over the […]
Nvidia Chief Executive Officer Jensen Huang has reportedly stepped down following allegations of relationships with a suspected Chinese intelligence operative and an executive at the technology company.
The reported development comes as the $4.2 trillion technology giant faces a sharp decline in market value, losing more than $600 billion this week amid concerns over the allegations. Its shares reportedly fell by more than 10 per cent in premarket trading on Thursday.
Nvidia’s Chief Financial Officer and Executive Vice President, Colette Kress, has reportedly been appointed interim CEO.
The company’s board is said to have met on Wednesday night to discuss Huang’s position after allegations involving a suspected Chinese spy reportedly triggered investigations by the FBI, the United States Congress and Nvidia itself. The company is also facing a shareholder class-action lawsuit.
The woman identified in the allegations as Alice Huang is a former executive at Singapore-based Megaspeed, Nvidia’s primary business partner in Southeast Asia. Megaspeed, founded in 2023, has reportedly faced investigations over claims that it helped Chinese companies gain access to an estimated $4.8 billion stock of advanced Nvidia chips.
The allegations have raised national security concerns in the United States, where restrictions on advanced chip exports to China are intended to prevent the technology from reaching the Chinese military, intelligence agencies and other entities.
Huang, 63, co-founded Nvidia and serves as its president and chief executive. He owns approximately 3.6 per cent of the company’s shares and is one of the world’s wealthiest individuals. He has also been a prominent advocate for easing US restrictions on chip exports to China.
US President Donald Trump said earlier this week that Huang told him he had no idea he was involved with an intelligence operative.
The reported board meeting followed a New York Times report alleging that Huang was also involved in an extramarital relationship with a Nvidia vice president who reports directly to him.
Nvidia’s board has reportedly hired a law firm to investigate the allegations involving Alice Huang. The company’s shares have continued to decline since the reports emerged, with Reuters reporting a fall to a 14-year low.
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