What happened Jensen Huang has resigned as chief executive of Nvidia following reports that he had extramarital relationships with a woman accused of links to Chinese intelligence as well as several Nvidia employees.
The company said Huang had stepped down immediately as chief executive, president and board member. Chief financial officer Colette Kress will take over temporarily while Nvidia searches for a permanent successor.
Investors reacted sharply, with Nvidia shares falling 13% at the opening of trading before recovering to close 4.3% lower. The decline erased more than $180 billion (£136 billion) from the company’s market value in a single day.
Who said what In a statement Nvidia’s board praised Huang’s “profound” contribution to the company, but did not mention the allegations.
“Billions lost and markets roiled by one man’s indiscretion. Isn’t it now clear that these tech bros are too powerful?” said Aditya Chakrabortty in The Guardian, adding that this affair “must be the costliest fling in human history – and a preview of what awaits when the tech bubble bursts”.
What next? Nvidia is considering internal and external candidates for its top job, including Kress, Arm CEO Rene Haas and AMD chief Lisa Su. Donald Trump has backed former Apple chief executive Tim Cook to be Huang’s replacement, calling him “a legend”.
“Now the company will have to prove to its employees, its customers and its investors that it can get back to business as usual,” said Samira Hussain on the BBC.
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