Nvidia chief Huang resigns after affair reports

SANTA CLARA

Nvidia said on Nov. 12 that co-founder Jensen Huang had resigned following reports of extramarital affairs, as its board investigates whether he was targeted by a foreign intelligence operation.

Huang left his positions as president, chief executive and board member with immediate effect.

Chief financial officer Colette Kress will serve as interim CEO while the board considers internal and external candidates for a permanent successor.

Nvidia shares closed 4.3 percent lower that day after falling more than 12 percent in early trading.

Kress, who joined the U.S. chipmaker in September 2013, will retain her roles as chief financial officer and executive vice president.

Board member Harvey Jones was appointed the company’s first board chair.

The resignation announcement did not give a reason for Huang’s departure.

The board launched an independent investigation on Nov. 8 following reports of Huang’s relationship with Alice Huang, a former executive at Singapore-based cloud company Megaspeed.

U.S. authorities suspect her of spying for China, according to reports.

Beijing has denied the allegation.

The New York Times also reported that Huang had an affair with a senior Nvidia executive who reported to him.

When announcing the inquiry, the board said it had no reason to believe U.S. national security or company secrets had been compromised.

Independent directors, assisted by outside lawyers, would oversee the investigation.

In a message to employees on Nov. 8, Huang acknowledged being unfaithful to his wife and pledged to cooperate fully with the inquiry.

“I am committed to protecting NVIDIA and supporting America’s national security,” he wrote.

Nvidia said its quarterly financial results would be released on Nov. 17 as previously scheduled.