Jensen Huang quits Nvidia after affair with alleged Chinese spy, Congress calls for testimony

Departure and interim leadership

Jensen Huang stepped down as Nvidia's chief executive, chairman and director on Thursday, 12 November, with immediate effect and without giving a reason. Chief financial officer Colette Kress will act as chief executive while the chipmaker looks for a permanent successor, weighing candidates from inside and outside the company. Huang, who co-founded Nvidia more than three decades ago, also leaves the board, where he held a stake of about 3.61%. The board named Harvey Jones, a former chief executive of Synopsys who already sat on Nvidia's board, as chairman, the first in the company's history. Relationships outside his marriage, which became public before his exit, preceded the decision.

Espionage allegations and the FBI inquiry

The New York Times reported that US intelligence agencies believe Alice Huang, a Chinese businesswoman with no family ties to Jensen Huang, works for Beijing. She is linked to Megaspeed, a Singapore-based company that did business with Nvidia through subsidiaries in Southeast Asia. Singapore's government said she is barred from entering the country and had been investigated last year, along with other companies, over possible false statements about purchases of computer servers. No evidence of a crime was found, but she was found to have given unreliable information about Megaspeed. Justice Minister Todd Blanche told a press conference on Thursday that the FBI had opened an inquiry after press reports, but his department had not yet decided whether she spied for China. China's foreign ministry spokesperson Mao Ning rejected the spy claims and accused the United States of fabricating espionage narratives to justify technology restrictions. The New York Times, citing five sources, named Kimberly Powell, Nvidia's vice president for health care, as the other woman; she joined the company in 2008 and reported directly to Huang. Reuters reported on Thursday a further relationship with another female employee, without naming her, and Nvidia declined to comment.

Trump, Congress and the Commerce Secretary

President Donald Trump, who had defended Huang after the first reports, said in a podcast interview on Thursday that whether the woman was a spy was the key question, and that his view could change if she was not. The New York Times, citing two people familiar with the matter, reported that Trump had called Huang on Tuesday and urged him to fight to keep his job. The Senate Banking Committee has summoned Huang and Lutnick, and its chairman, Tim Scott, threatened a subpoena if Huang does not testify voluntarily. Chairs of three House committees asked Huang and Nvidia's chief legal officer, Tim Teter, to attend non-public hearings on 1 and 2 December or face subpoenas. House Foreign Affairs chairman Brian Mast said Huang had agreed to testify behind closed doors before Thanksgiving on 26 November. Lutnick's spokesperson, Kristen Eichamer, said he volunteered to appear before the banking committee, while two people familiar with the matter said the White House is discussing replacing him. Separately, a bipartisan group in Congress is pushing for tighter export controls on advanced AI chips to China. House Speaker Mike Johnson said chip export controls to China are a big topic and that he supports limiting Beijing's access, and Republicans want new restrictions tied to the annual defense budget. At least four draft bills on chip exports have gained momentum since Monday, while Chinese AI companies are renting computing capacity abroad on Nvidia chips out of fear of such limits.

Share price and what comes next

Nvidia shares fell 13% at the opening of Wall Street on Thursday before recovering to close 4.3% lower, while the broader technology sector limited the damage. The stock had already lost about a quarter of its value over a single month. The company's market value dropped by $550 billion in the five days after the scandal became the focus of media attention.

At Wall Street open, 12 November-13%

At Wall Street close, 12 November-4.3%

At Wall Street open, 12 November

-13 %

At Wall Street close, 12 November

-4.3 %

Data from the article text

Nvidia said it had no reason to believe national security or its trade secrets were compromised, and that its independent investigation would review all available information. The closed-door testimony before Thanksgiving, the December hearings, the FBI review of the spy allegations and the search for a permanent chief executive are the next steps.