Nvidia CEO Jensen Huang steps down after spy scandal
Shares fell 10% in premarket trading as the company named its CFO as interim chief executive.
By Oliver Bennett ·
Nvidia shares dropped 10% in premarket trading on Thursday.
The stock movement followed the resignation of CEO Jensen Huang, who stepped down after his personal life raised national security questions for the technology giant.
The board of directors announced that Colette Kress, the company’s executive vice president and chief financial officer, will serve as interim CEO.
The board also appointed Harvey C. Jones, an entrepreneur and venture investor, as the company’s first-ever chairman.
Huang faced increasing pressure to leave his post after reports surfaced regarding his relationship with Alice Huang, also known as Huang Le.
Alice Huang is a former executive at Megaspeed International, a Singapore-headquartered company suspected of being a Chinese government agent.
The New York Times reported on Wednesday that Huang also had an extramarital affair with an Nvidia executive who reported directly to him.
The Associated Press could not independently confirm those specific reports about the Nvidia employee.
The board convened to discuss Huang’s future after U.S. intelligence agencies revealed the close relationship with Alice Huang.
Those agencies determined she was passing information to Beijing.
President Donald Trump announced on Sunday that the FBI had opened an investigation into the matter.
In its first public statement since the scandal emerged, Megaspeed said it takes its obligation to comply with U.S. export control laws extremely seriously.', "Megaspeed is committed to working constructively and transparently with the U.S. government," said Tan Yong Pong, the company’s chairman and CEO.', "Tan, who also goes by James Tan, signed the statement released on Thursday.', "Megaspeed said it has cooperated with the U.S. Department of Commerce’s Bureau of Industry and Security (BIS).', "The company stated it is ready to cooperate fully with any other relevant U.S. government authority.', "Megaspeed hired a U.S. law firm to conduct a comprehensive census of its computer chips and verify its export controls.', "The company added that it welcomes appropriate government scrutiny and is committed to demonstrating through concrete actions that it operates responsibly and transparently in accordance with applicable U.S. laws.', "Nvidia stated it had no reason to believe that national security or company secrets were compromised.', "The company said its inquiry would examine all available information.', "Megaspeed faced claims last year that it was illicitly shipping advanced Nvidia computer chips into China.', "In December, the company said there was no evidence of such exports.', "Singapore has also said it is investigating such allegations.', "China denied that it engaged in an attempt to ensnare Huang.', "Huang heads one of the world’s most valuable companies and has lobbied Washington to loosen limits on sales of Nvidia chips to China.', "In January, he won Trump’s approval for selling H200 chips to China.', "Megaspeed’s finances have also drawn attention.', "According to Singapore corporate records, its total assets soared roughly 90-fold from late 2023 to 2024, reaching almost $3 billion.', "Revenue surged to over $294 million in 2024 from none in 2023.'
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