AI Giant Faces Leadership Shock: Nvidia CEO Jensen Huang Resigns Amid Affair and China Spy Scandal

Jensen Huang has stepped down as Nvidia’s CEO after 33 years of leading the company he co-founded. The resignation took effect immediately on Thursday, November 12, following a turbulent week of damaging headlines. Reports of two extramarital relationships pushed the board toward a decision it had resisted only days earlier. One involved Alice Huang, a former Megaspeed executive, whom US intelligence officials suspect of acting for Beijing. China has denied the claim and described it as a smear campaign. The other relationship reportedly involved a senior Nvidia executive who reported directly to him.

Nvidia has named CFO Colette Kress as interim CEO while it searches for a permanent successor. Kress has served as finance chief since 2013 and previously worked at Cisco, Microsoft and Texas Instruments. The board will consider both internal and external candidates for the permanent role. Investors have pointed to Kress and longtime engineer Ian Buck as the leading internal contenders. Harvey Jones, a former Synopsys chief executive, has also become Nvidia’s first-ever board chair. Huang will leave the board as well, although he still holds a 3.61% stake. In a memo to staff, Kress described the past days as exceptionally hard and promised a company meeting on November 18.

Trump, Lutnick and Congress Turn Up the Heat on Chip Exports to China

The fallout has moved quickly from the boardroom to Washington. House Speaker Mike Johnson has said a consensus is growing in Congress to limit chip exports to China. Lawmakers from both parties have also pushed for tougher curbs on advanced AI chips. Huang had long lobbied for looser rules and had cultivated close ties with President Donald Trump. Trump reportedly urged him in a Tuesday call to fight for his job. After the resignation, Trump praised Huang’s work and suggested former Apple chief Tim Cook as his replacement.

Congressional scrutiny is now building around both Huang and the Trump administration. Senate Banking Chair Tim Scott has asked Huang to testify on December 3 and warned that a subpoena is possible. Meanwhile, three House committees have summoned him for a closed-door interview on December 1. Commerce Secretary Howard Lutnick has also been called before the Senate panel because of questions over his handling of chip sales. Senior White House officials are reportedly discussing whether he should be pushed out, although one official insisted Trump still has full confidence in him. Attorney General Todd Blanche has said the Justice Department has not yet concluded whether Alice Huang was a spy or not. Trump has separately said the FBI is examining the matter.

Market Shockwaves Test the AI Boom After Nvidia’s Worst Week Since Going Public

The financial damage has been severe and fast. Nvidia has lost about $550 billion in market value in five days, its steepest five-day drop since its stock market debut 27 years ago. Shares closed down 4.3% on Thursday. The stock is now roughly 31% below its recent peak, when its value had neared $6 trillion. That climb followed a sevenfold surge in the share price through early October. Nvidia has said it has no reason to believe national security or company secrets were compromised. Even so, investors have not abandoned the wider AI trade. Retail traders bought Nvidia shares heavily as the price fell on Thursday. Rivals AMD and Broadcom each gained about 6%, while Cerebras jumped 18% after lifting its sales forecast.

Analysts have warned that the real risk lies in execution, since Huang acted as the chief conductor of a very complex system. Washington’s response on chip exports will also shape how the industry moves from here. Ultimately, Huang’s exit shows how much of the AI boom had come to rest on one founder’s shoulders. The company’s next move will test whether Nvidia can steady its partners and its investors without Jensen Huang. It will also show whether governments will tighten the rules on the chips that power modern AI.

Web Resources on Nvidia leadership crisis

1. AP News : What we know after Jensen Huang resigns as Nvidia CEO.
2. Reuters : Nvidia CEO Jensen Huang resigns in blow to AI boom he helped foster.
3. BBC : Ex-Nvidia CEO Jensen Huang summoned to testify before Congress about affair with alleged Chinese spy.
4. Academic Block : Jensen Huang Faces Possible Nvidia Exit Amid Affair Scandal, as Shares Plunge.