Nvidia CEO Jensen Huang Resigns Amid Extramarital Affair Scandal

Jensen Huang has abruptly resigned as chief executive of Nvidia, the US company that makes the computer chips powering artificial intelligence (AI). The move follows reports of alleged extramarital affairs that have shaken the company and drawn the attention of US politicians. Nvidia's market value has fallen by $550bn in five days.

What happened

Huang, the company's public face since 1993, admitted on Sunday that he had been unfaithful to his wife. This came after reports of a relationship with Alice Huang, who is suspected of being an intelligence asset for China. She is not related to him. Alice Huang worked as an executive at the Singaporean firm Megaspeed. China has rejected the allegation as a smear. On Wednesday, a second relationship was reported, with long-time Nvidia executive Kimberly Powell, who reported directly to Huang.

US Attorney General Todd Blanche said on Thursday that the Department of Justice had not yet reached conclusions on whether Alice Huang engaged in espionage for Beijing. Senators Elizabeth Warren and Chris Coons, together with other Democrats on the House Foreign Affairs Committee, have publicly demanded that Huang brief Congress. A Senate staff member told the BBC he could be subpoenaed if he refuses to appear voluntarily.

The company's response

Nvidia said it has no reason to believe national security or company secrets were compromised, and promised an independent inquiry. Chief Financial Officer Colette Kress was named interim CEO on Thursday, and the company is searching for a permanent replacement. One employee told the BBC that after the second affair was reported, colleagues began to feel the situation was crazy.

Market impact

It is the largest five-day drop since the company went public 27 years ago. Its value is now 31% below the peak reached a few weeks ago. Nvidia makes up about 7% of the S&P 500 index, so the fall can also affect US retirement savings.