Nvidia CEO Jensen Huang Resigns After Board Meeting; Reports Cite Two Extramarital Affairs, One Involving Alleged Chinese Spy

Nvidia's board of directors announced Thursday morning that co-founder and CEO Jensen Huang has resigned effective immediately, ending his 33-year run at the helm of the world's dominant AI chipmaker. The decision followed a board meeting Wednesday; the meeting's format and location were not disclosed. The move came after the New York Times reported two extramarital affairs — one with a woman whom the Times said U.S. intelligence officials believed was passing information to Chinese intelligence, and another with a senior Nvidia executive who reported to Huang. Reuters could not independently verify the second affair.

The company named Chief Financial Officer Colette Kress as interim CEO and appointed longtime director Harvey C. Jones as its first-ever board chair, a newly created position. Nvidia shares fell roughly 10% in premarket trading [1], extending a three-day rout that has erased approximately $600 billion in market value [3].

Two Affairs, One With National Security Implications

The cascade began Sunday when Nvidia's board disclosed it had launched an independent investigation into Huang's relationship with Alice Huang (no relation) [4], an executive at Singapore-based cloud provider Megaspeed and a major Nvidia customer [1]. The New York Times reported that U.S. intelligence officials believed Alice Huang was passing information to Beijing while developing a romantic relationship with Jensen Huang [4]. China has denied the espionage allegations [4].

On Sunday, Jensen Huang sent an apology email to employees admitting to an affair but did not name the woman involved [2]. On Sunday the board expressed confidence in his leadership [5]. The second affair was reported on Wednesday [1].

The situation escalated Wednesday when the New York Times reported a second affair — with Kimberly Powell, Nvidia's vice president of healthcare and a direct report to Huang. The Times cited five current and former employees and said the pair were recorded "being affectionate" at a California hotel. According to the New York Times, when contacted by the paper, Huang replied, "I don't think you should be talking to me directly," and hung up. Nvidia and Powell did not immediately respond to requests for comment. Reuters could not independently verify the report [1].

Board Acts After Overnight Deliberations

Nvidia's 11-member board — all independent except Huang — met Wednesday night; the meeting's format and location were not disclosed. Under company bylaws, the CEO can be removed "with or without cause" by a majority vote [5]. The board appointed Harvey C. Jones, a director since 1993 and former CEO of Synopsys, as its first chair [1][7]. Stephen Neal, the lead independent director and a Silicon Valley attorney, played a key role in convening the board [2].

The board retained former acting U.S. Attorney Joon H. Kim to lead the investigation [4]. In its Thursday statement, the board thanked Huang for "immeasurable contributions" but offered no details on the investigation's findings [7].

Market Reaction and Governance Concerns

Nvidia's stock traded at 12.2 times forward earnings — its lowest multiple since 2012 — reflecting investor uncertainty over leadership [1]. Short sellers have booked roughly $3.8 billion in paper profits [1]. Analysts at Bernstein halved their price target; Baird and Bernstein downgraded the stock, and Morgan Stanley removed it from its Top Pick list [2].

"Losing Jensen would be a real blow," said Armina Rosenberg of Minotaur Capital, a Nvidia shareholder. "The market is starting to price Nvidia without its founder as the likely outcome, not a tail risk" [5].

Political and Export-Policy Stakes

Huang's close ties to President Trump — who called him "a very honorable man" Monday [4] — and his lobbying for continued Chinese market access have drawn bipartisan scrutiny. Three Republican committee chairs requested a closed-door briefing; Senator Kevin Cramer said Huang "should resign" [2]. The Trump administration permitted H200 chip sales to China last year at Huang's urging [2]. Analysts have warned of potential curbs on chip sales to China, and some lawmakers have signaled they may push for tighter export controls [2][5].

Megaspeed, Alice Huang's former company, said Thursday it is cooperating with the U.S. Commerce Department's Bureau of Industry and Security and has hired a U.S. law firm to audit its GPU inventory and export compliance [1]. Bloomberg reported Alice Huang is now in Beijing, living with the knowledge of security officials; Reuters could not verify [1].

No Clear Successor, Unusual Governance Structure

Huang, 63, owns roughly 3.5% of Nvidia and maintains a flat management structure with dozens of direct reports and no designated second-in-command [2][8]. The proxy statement filed in May shows Huang as the only director possessing all eight skills the board deems necessary, including "regulatory, legal and risk management" [8]. Three independent directors have served continuously since the 1990s, and a fourth, Mark Stevens, served from 1993 to 2006 and rejoined in 2008, raising questions about their independence in investigating the founder [1].

Potential interim leaders include Kress (CFO since 2013) [7] and Ian Buck, creator of Nvidia's CUDA platform [1][2]. Arm CEO Rene Haas and co-founder Chris Malachowsky have also been mentioned [2]. Prediction market Polymarket placed an 88% probability on Huang's departure by year-end, with Buck favored as successor [5].

What Remains Unknown

• The board has not disclosed the investigation's findings or whether it concluded national security or trade secrets were compromised. On Sunday it said it had "no reason to believe" either was affected [4], but that was before the second affair emerged.
• Alice Huang has not commented publicly. Her whereabouts and status are unconfirmed beyond the Bloomberg report.
• The class action filed Monday in San Jose federal court alleges Nvidia and Huang defrauded shareholders by concealing the relationship [1]. The SEC could investigate disclosure failures. If Huang knew of Alice Huang's alleged intelligence ties, he could face criminal liability under the Economic Espionage Act [1].
• Nvidia's quarterly results are due November 17 [5]. The company says operations, customer commitments, and product roadmap will continue without interruption [7].

Huang's resignation marks the abrupt end of an era for the company that became the infrastructure backbone of the AI boom. Whether Nvidia's technology lead and ecosystem investments — roughly $99 billion across AI labs and cloud providers, according to company disclosures reported by The Verge [6] — can be sustained without its founder is now the central question for a $4 trillion enterprise.