Nvidia CEO Jensen Huang resigned on Thursday following revelations of an extramarital affair that raised significant security concerns. The company announced that Colette Kress, who currently serves as executive vice president and chief financial officer, will take over as interim CEO.
The pressure for Huang to step down increased after reports emerged of his affair with an alleged Chinese spy. Additionally, it was disclosed that Huang had another extramarital affair with an Nvidia employee who directly reports to him. This series of events culminated in the Nvidia board convening to discuss Huang's future amid the escalating scandal.
As part of the leadership changes, Nvidia's board named its first-ever chairman, Harvey C. Jones, an entrepreneur and venture investor. Following the news of Huang's resignation, shares of Nvidia, recognized as one of the largest companies globally, fell by 10% during premarket trading on Thursday.
An inquiry was initiated by Nvidia's board that particularly focused on Huang's affair with a former Megaspeed executive, who is suspected of being linked to the Chinese government. Reports from The New York Times highlighted that Huang's interactions raised alarms with U.S. intelligence agencies, which believed he had developed a close relationship with Alice Huang, also known as Huang Le. This relationship allegedly raised concerns regarding information being passed directly to Beijing.
Megaspeed International, based in Singapore, issued its first public statement in response to the crisis, emphasizing its commitment to complying with U.S. export control laws. However, details surrounding Huang's relationship with the Megaspeed executive remained unclear. The company's chairman and CEO, Tan Yong Pong (also known as James Tan), stated that Megaspeed is dedicated to cooperating transparently with U.S. governmental bodies.
While Nvidia has asserted that it had "no reason to believe" that either national security or proprietary Nvidia information had been compromised, the ongoing inquiry aims to investigate all relevant aspects of the situation. The New York Times also reported on U.S. President Donald Trump's announcement that the FBI is investigating the claims surrounding Huang and his affiliations.
Megaspeed faced prior allegations of illicitly exporting advanced Nvidia computer chips to China, but the company declared in December that there was "no evidence" supporting these claims. Furthermore, Singaporean authorities are also pursuing an investigation into these allegations. China's position has been to deny any involvement in attempting to compromise Huang, who manages one of the world's most valuable tech companies.
Nvidia has positioned itself as a leader in the production of chips essential for artificial intelligence technologies. Huang has been an advocate for easing restrictions on chip sales to China, and in January, he secured approval from Trump for the sale of Nvidia's H200 chips to the Chinese market.
In light of the scrutiny surrounding Huang and Megaspeed, the latter has engaged a U.S. law firm to conduct a comprehensive review of its computer chips and to verify its adherence to export control regulations. Megaspeed has expressed its willingness to cooperate fully with the U.S. Department of Commerce's Bureau of Industry and Security (BIS) and any other relevant authority.
Financially, Megaspeed's situation has also attracted attention, with an astounding 90-fold increase in total assets from late 2023 to 2024, bringing them to nearly $3 billion. Revenue skyrocketed to over $294 million in 2024 from none the previous year, indicating rapid growth amidst the surrounding controversies.
