The Santa Clara chipmaker is searching for a permanent successor as an independent board investigation examines national security concerns raised in news reports.
By Miles J. Edwards | A.T.L. N.E.W.S. California Bureau
SANTA CLARA, Calif. – Nvidia announced Thursday, Nov. 12, that co-founder Jensen Huang had stepped down as chief executive, president and a member of the company’s board. The board accepted his resignation Wednesday, effective immediately, according to a filing with the U.S. Securities and Exchange Commission. His departure ends a 33-year run leading the Silicon Valley chipmaker.
The board named Colette Kress, Nvidia’s chief financial officer and executive vice president since 2013, as interim CEO. She will retain both posts while the company considers internal and external candidates for the permanent job. Nvidia also appointed Harvey C. Jones, a director since 1993, as its first board chair.
Board investigation preceded resignation
Nvidia announced the leadership change days after its board opened an independent investigation into reports that Huang had been targeted by a foreign intelligence effort. On Sunday, the board said it had no reason at that point to believe U.S. national security or Nvidia’s confidential information had been compromised. On Tuesday, independent directors said they had retained former acting U.S. Attorney Joon H. Kim and his law firm, Wachtell, Lipton, Rosen & Katz, to conduct the inquiry.
In a Sunday email to employees released by Nvidia, Huang acknowledged being unfaithful to his wife and said he would cooperate with the investigation. The Associated Press reported that The New York Times had described a relationship with a businesswoman whom U.S. intelligence suspected of spying for China. Beijing denied the allegation. AP also reported that separate accounts described a relationship with an Nvidia executive who reported directly to Huang. Nvidia’s Thursday announcement gave no reason for his departure.
A leadership change at the center of the AI boom
Huang founded Nvidia in 1993 with Chris Malachowsky and Curtis Priem. The company grew from a graphics chipmaker into a major supplier of the processors that power artificial intelligence. As CEO, Huang also pushed to preserve Nvidia’s access to the Chinese market, putting him at the center of a debate over U.S. restrictions on advanced chip exports.
Kress said Nvidia would continue its work in accelerated computing and AI. The company gave no timetable for naming a permanent chief executive in its Thursday announcement.