Nvidia CEO Jensen Huang quits amid China spy and affair allegations

Nvidia has undergone an unexpected leadership shake-up after its co-founder and longtime chief executive, Jensen Huang, stepped down amid allegations of two extramarital relationships, one of which has raised concerns about possible links to Chinese intelligence.

Huang's resignation follows reports that he was involved with a married healthcare executive working under him at Nvidia and a Singapore-based businesswoman suspected of having connections to China's spy agency.

The developments have placed the technology giant under increased scrutiny, with questions emerging over whether its chief executive may have been drawn into a foreign intelligence operation.

In its announcement, Nvidia's board named Executive Vice President and Chief Financial Officer Colette Kress as interim Chief Executive Officer, following Huang's immediate departure from the company.

The board also created a new leadership position, appointing former Synopsys chief executive Harvey Jones as Nvidia's first chairman. The decision represents a major shift in the company's governance structure, which had remained largely centred on Huang throughout its history.

The leadership changes followed a board meeting held on Wednesday night to deliberate on Huang's future. A person familiar with the discussions said the White House had been informed about the meeting.

Nvidia's shares dropped by more than 11 per cent after the board announced the changes, as investors reacted to the sudden exit of a leader who had guided the company through years of rapid expansion.

Huang, 63, co-founded the Silicon Valley-based chipmaker in the early 1990s and remained at its helm during its rise into one of the world's biggest publicly traded companies. Nvidia's growth accelerated during the artificial intelligence boom, with its advanced processors becoming central to the development of AI technologies.

His successor, Kress, has served as the company's chief financial officer since 2013 and is regarded as an experienced figure within its leadership team. She has regularly represented Nvidia at investor conferences and earnings briefings, explaining its financial performance and business operations.

Before joining Nvidia, Kress held positions at Cisco and Microsoft. Her appointment places an executive familiar with the company's financial structure and day-to-day operations in charge during a period of uncertainty.

The controversy surrounding Huang intensified after The New York Times reported that he had an alleged extramarital relationship with a married healthcare executive who reported directly to him. The publication cited five people who had previously worked at Nvidia.

The reported relationship raised concerns about whether Huang had breached the company's workplace conduct rules. However, NBC News said it had not independently verified the claims, while Nvidia and the executive had not responded to several requests for comment.

The allegations followed earlier reports linking Huang to Alice Huang, a business executive suspected of having connections to China's Ministry of State Security.

According to people familiar with the matter, US Secretary of State Marco Rubio circulated a memorandum to Trump administration officials earlier in the year detailing intelligence suggesting that Huang was romantically involved with a business executive believed to be an asset of Chinese intelligence.

Alice Huang held a senior position at Megaspeed, a Singapore-based company that purchased advanced semiconductor chips from Nvidia. The firm and several related businesses are facing a US criminal investigation over allegations that they smuggled American-made chips into China.

Her precise relationship with Chinese intelligence remains unclear. A former national security official familiar with the matter said she might not have been a career intelligence operative but could have been asked to provide information because of her access to Huang.

The allegations prompted Nvidia's board to launch an investigation into whether Huang had been targeted as part of a foreign intelligence operation.

The company later engaged a former acting US attorney and his law firm to carry out an independent investigation into the matter.

Huang subsequently apologised to Nvidia employees in an internal memorandum and expressed support for the independent inquiry as the company sought to establish the facts surrounding the allegations.

The developments have created one of the most challenging periods in Nvidia's history, with the company now facing questions over its leadership, internal governance and potential exposure to foreign intelligence activities.