Nvidia's Jensen Huang quits after admitting an affair

Board accepts immediate resignation after 33-year tenure

Nvidia's board accepted the immediate resignation of founder Jen-Hsun Huang as president, chief executive and director on 12 November, ending a 33-year run at the helm of the world's most valuable semiconductor company.^[1] Colette M. Kress, Nvidia's executive vice-president and chief financial officer, was appointed interim CEO and will hold both roles while the board considers internal and external candidates for the permanent position.^[2]

Harvey C. Jones, a director since 1993, was simultaneously appointed to what Nvidia described as the company's first-ever board chair position.^[2] No timeline for completing the permanent CEO search has been disclosed.

Kress said: "NVIDIA's strength has always come from its people, and together with our leadership team, I am committed to building on the extraordinary foundation Jensen created over the last 33 years."^[2]

Huang acknowledges affair, investigation announced days earlier

Nvidia's board announced on 8 November that it had launched an independent investigation after reports Huang had been the target of a foreign intelligence effort.^[3] A committee of independent directors and outside counsel was appointed to oversee the inquiry, and the board said at the time it had no reason to believe national security or Nvidia secrets had been compromised.^[3]

Also on 8 November, Huang issued a public statement acknowledging the personal conduct at the centre of the inquiry. Huang said: "I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry."^[4] His published message did not name the other person or describe the relationship beyond that acknowledgement.

Congressional inquiry and the limits of the public record

Four days before the investigation was announced, House committee chairs Brian Mast, John Moolenaar and Rick Crawford wrote to Huang requesting a closed-door briefing on Nvidia's security protocols and his interactions with a person named Alice Huang.^[5] Their letter described Alice Huang as a "publicly reported" People's Republic of China intelligence asset, language that attributes the espionage claim to public reporting rather than to an official intelligence finding.

Nvidia's own documents do not name Alice Huang or make any espionage finding, and the House committee's characterisation rests explicitly on what has been publicly reported rather than on a declassified or on-the-record government assessment.^[5] The confirmed public record does not independently establish Alice Huang's role in the affair or her alleged intelligence activities.

Megaspeed denies wrongdoing, launches compliance review

Megaspeed, a company linked to the reporting, said it takes US export-control obligations "extremely seriously" and had cooperated with Bureau of Industry and Security inspections conducted by the US Commerce Department.^[6] Megaspeed chairman and chief executive Tan Yong Pong, James said: "Compliance is a fundamental priority for the company, and Megaspeed is committed to working constructively and transparently with the U.S. government."^[6]

Megaspeed said it had retained a US law firm to conduct an independent GPU census and verify its compliance practices.^[6]

Shareholder class action alleges disclosure failures

A proposed federal shareholder class action, filed as Kistenmacher v. NVIDIA Corporation et al, alleges Nvidia and Huang made materially false or misleading statements by failing to disclose the alleged affair and the risks associated with Megaspeed.^[7] Those allegations have not been tested in court and remain unproven.

The complaint alleges Nvidia shares fell US$7.97, or 4.27 per cent, to close at US$178.67 on 9 November, the day the investigation was first reported.^[7] Nvidia's independent-director inquiry remains ongoing, with no findings released as of the date of the SEC filing disclosing Huang's departure.^[1]