On Sunday, Nvidia’s board expressed its confidence in Jensen Huang. On Thursday, he announced his resignation. Between the two statements there are some apologies for infidelity, the hiring of external lawyers, and a meeting to decide the future of the man who had led the company for 33 years. In Silicon Valley, there are also updates that arrive before expected.
Huang immediately leaves the presidency, the executive management, and his seat on the board. Colette Kress, chief financial officer, takes over on an interim basis. The company that occupies a central position in the artificial intelligence business will have to look for a successor while it is investigated whether its founder was the target of a foreign intelligence operation.
The story has thriller ingredients, but it still does not have all the evidence or a judicial resolution.
A relationship that stopped being a private matter
At the center of the information appears Alice Huang, a former executive of Megaspeed, a company headquartered in Singapore. The FBI is investigating allegations that she would have transferred information to Beijing. China has denied the espionage operation.
The relationship took on a different dimension because the man involved was running Nvidia. His chips are part of a technology dispute in which Washington is trying to limit China’s access to certain advanced computing capabilities. Reuters places the case within that debate over exports and the control of a strategic technology.
Megaspeed has also been the subject of allegations about irregular shipments of chips to China, which the company rejects. The company has announced its willingness to cooperate with U.S. authorities and a review of its inventories and export controls. These are investigations related to the business environment of the case, not a demonstration that Huang handed over secrets.
Sunday of apologies and trust
On November 8, Huang sent employees a message that had little to do with product presentations. He acknowledged having been unfaithful to his wife, accepted the damage caused to his family, and apologized.
In that communication, he did not identify the person he had been having the relationship with. He also said that he would cooperate with the investigation and that he remained committed to Nvidia. The text combined two responsibilities that the scandal had suddenly brought together: the family one and the responsibility of running a company under scrutiny for reasons of national security.
That same Sunday, the board announced an independent investigation. Its public position had two elements: it found no grounds to believe that Nvidia secrets or U.S. national security had been compromised and it maintained confidence in Huang and his team.
It was a backing accompanied by an investigation, not an acquittal. The committee of independent directors had to examine the information available with the help of outside advisers.
Beijing denies it; Nvidia calls in the lawyers
On Monday, China’s Ministry of Foreign Affairs rejected the accusations. Its spokesperson, Guo Jiakun, described them as unfounded and presented them as an attempt to discredit China. The denial forms part of Beijing’s official version; by itself, it does not resolve the U.S. inquiries.
On Tuesday, Nvidia put a name to the team tasked with investigating. The independent directors hired Joon H. Kim, the former acting U.S. attorney for the Southern District of New York, and his firm, Wachtell, Lipton, Rosen & Katz.
The announcement was brief. Its business significance, less: the review was left in the hands of an outside legal team with experience in matters of high public exposure.
Another relationship disclosed and advice that reviews its endorsement
On Wednesday, new information was added. The New York Times reported that Huang had maintained another relationship with Kimberly Powell, a Nvidia executive who reported to him. Reuters picked up that information and specified at the time that it had been unable to verify it independently.
The agency also reported that the board was meeting to decide on whether to keep the founder in place. The matter had already moved from investigating what happened to discussing who should run the company.
In terms of corporate governance, the questions were different. One investigation needed to clarify suspicions of foreign intelligence. Another issue was how information about personal relationships affected confidence in the top executive. Resignation does not allow the first to be considered resolved.
Thursday: immediate departure and interim replacement
On November 12, the final statement arrived. Nvidia confirmed Huang’s resignation effective immediately and named Kress as interim CEO. The search for a permanent executive will include candidates from within and outside the company.
Harvey C. Jones assumes the chairmanship of the board. The company thanks the contribution of its founder and promises operational continuity. The language is the usual one for a business transition; the pace, quite less.
The market received the announcement with strong sales: Nvidia shares plunge this Thursday, November 12, after Jensen Huang's resignation is confirmed. The stocks have fallen by more than 10% in pre-market trading ahead of the opening of Wall Street, amid doubts about the founder's succession and an investigation for alleged espionage.
Nvidia maintains for November 17 the presentation of results for the third quarter of its fiscal year 2027. Kress will arrive at that event as interim chief executive officer and in charge of finance, while the election of a definitive successor remains pending and the investigation has not published its conclusions.
Timeline of a scandal that has shaken Silicon Valley
EN DATOS
The four days that shook up the AI industry
The four days that shook up the Artificial Intelligence industry
November 8: Huang acknowledges the infidelity. The founder sends a message to employees in which he apologizes to his wife and his children. He does not identify the other person. He says that he remains committed to Nvidia and that he will cooperate with the investigation.
November 8: the board opens an investigation and supports him. Nvidia announces an independent review of information regarding a possible foreign intelligence operation targeting Huang. It states that it has no grounds to believe that business secrets or national security have been compromised, and it publicly maintains confidence in its CEO.
November 9: China rejects the accusations. A spokesperson for the Ministry of Foreign Affairs, Guo Jiakun, denies the allegations of espionage and calls them a smear campaign against Beijing. The denial does not put an end to the investigations.
November 10: outside lawyers come in. The independent directors hire former acting federal prosecutor Joon H. Kim and Wachtell, Lipton, Rosen & Katz to conduct the investigation announced two days earlier.
November 11: another alleged relationship is published. The New York Times reports on a relationship between Huang and Kimberly Powell, an executive who depended on him. Reuters picks up the news and warns that it has not been able to verify it in a
November 11: the board debates his continued tenure. Reuters reports on a meeting to decide the founder’s future. Sunday’s endorsement gives way to deliberation about whether he will remain at the helm of Nvidia.
November 12: immediate resignation and interim replacement. Nvidia confirms that Huang leaves the chairmanship, the executive leadership, and the board. Colette Kress takes over as interim CEO, retains her financial responsibilities, and the company begins the search for a permanent replacement. Harvey C. Jones moves to preside over the board.
November 17: next appointment with investors. The company maintains the presentation of its quarterly results. It will be the first since the announcement of the handover, with the investigation still having no public conclusions at the time of the resignation.
