Why Jensen Huang has resigned, how he reacted and what happens next for Nvidia
It is the end of an era for Jensen Huang and Nvidia. Jensen, who founded the company 33 years ago, no longer holds any position at Nvidia after facing scrutiny over his extramarital affairs. But just hours before the Nvidia founder decided to resign, he appeared to be “broken and shattered.”
As per a report from Bloomberg, citing people familiar with the matter, Jensen Huang seemed to be drained after what was a tiring week. Before making his resignation public, the report said, Jensen was heard using phrases such as, “whatever” and “I don’t care.”
This was in stark contrast to the usual energy and command Huang has been known for in Silicon Valley for years. According to the report, Jensen Huang appeared to be apologetic in recent days, going as far as calling himself a “piece of s**t.”
But what happened behind the scenes at Nvidia? What did the company’s board do to eventually see its founder leave? Let’s break it down for you.
When reports surfaced last month linking Jensen Huang to suspected Chinese spy Alice Huang, Nvidia’s board, which includes several long-time investors, business partners and friends of Huang, was initially reluctant to act or comment publicly.
At the same time, Huang reportedly denied these allegations to friends and colleagues. In one of his final interviews as CEO, he told Bloomberg that his relationship with Alice Huang was similar to those he maintained with Chinese customers and executives. “It was all completely normal and not unusual,” he said.
But the situation changed on November 6, when Financial Times cited US officials as saying the relationship had been romantic. Nvidia general counsel and board secretary Tim Teter then confronted Huang at his home, where Huang confessed. It is believed that Teter was the one who urged Nvidia’s board to act, prompting the company to announce an investigation. The following Sunday, Huang emailed employees, admitted to the affair and apologised to his family.
Things only got more complicated this week. On Wednesday, the New York Times reported that Huang was also having an extramarital relationship with Kimberly Powell, Nvidia’s vice-president of healthcare. As per the Bloomberg report, Nvidia’s directors met remotely that day and continued late into the night. Huang was ultimately given no choice but to resign, leaving him without a formal role at the company he built 33 years ago.
The scandal also appeared to affect his work. Around 60 executives reported directly to Huang, while employees submitted emails listing their five main priorities. Huang, who normally replied immediately at all hours, had recently taken longer to respond. On Thursday, he resigned as president, chief executive, and board member of Nvidia.
Later, Reuters reported that Huang was having a third extramarital affair with another Nvidia employee.What’s next for Nvidia
Huang’s resignation could be a challenge for Nvidia. Jensen Huang was the face of the company since it was founded and played a major role in making it one of the world most valuable firms in the world. While Nvidia is looking for a replacement, the company’s CFO Colette Kress is taking over as interim chief.
As per Bloomberg, Kress sought to reassure staff in an internal memo. “I believe deeply in this company and in its future,” she said. The interim Nvidia chief also thanked employees for their “resilience, professionalism and continued dedication”.
Colette Kress plans to hold an all-hands meeting on November 18. A day earlier, Nvidia is due to report results, with Wall Street analysts predicting that quarterly sales growth will nearly double.
It is said that Nvidia has shortlisted some candidates to replace Jensen Huang. AMD CEO Lisa Su, who is Huang’s distant cousin, and Arm Holdings CEO Rene Haas are believed to be two names in the shortlist.
As for Huang, he is expected to face questions in Congress about his relationship with Alice Huang and whether Nvidia’s chip secrets were put at risk. According to people who spoke with him, Huang said his main concern is his wife, Lori Huang, and avoiding “ruining the lives” of the women publicly linked to him.- EndsAlso Read | Nvidia employees demand second chance for Jensen Huang, return petition gets over 1,600 commentsAlso Read | Jensen Huang's third affair surfaces amid scandal that toppled Nvidia CEOAlso Read | Jensen Huang spy scandal rattles Nvidia, he risks losing CEO role, full story in 10 points
Armaan loves to keep an eye on everything happening in the world of tech and AI. You will find him testing new gadgets, exploring the latest LLMs and making sense of the emerging tech. When not working around tech, he will be exploring new music or catching up on motorsport or aviation.
