Nvidia CFO Colette Kress will serve as interim CEO while the company searches for a permanent successor to Jensen Huang. (Foto: Instagram)
Colette Kress, Nvidia’s executive vice president and chief financial officer, is taking over as interim CEO after Jensen Huang resigned as the company’s president and CEO. Kress agreed to serve until a permanent successor is appointed. Nvidia’s board has begun searching for candidates both inside and outside the company.
Kress joined Nvidia in September 2013 and led the financial strategy that helped drive the company’s expansion. Before that, she spent nearly 25 years in finance roles at major technology companies, including Cisco and Microsoft. In a statement, she said Nvidia’s strength came from its employees and that she was committed to building on the foundation Huang created over 33 years. She added that the company would continue its work in accelerated computing and artificial intelligence, while focusing on customers, partners, developers and shareholders.
Nvidia’s board confirmed Huang’s resignation and said Kress had agreed to serve as interim CEO until a permanent replacement is named. The company said it would consider internal and external candidates. Its statement did not address the scandals involving Huang or allegations of Chinese espionage. The board said Huang’s contributions to Nvidia and the technology industry were significant and thanked him for his work.
Pressure on Huang increased after The New York Times reported an alleged relationship between him and Kimberly Powell, president of Nvidia’s health-care division. The newspaper said the two were reportedly seen in an intimate situation at a hotel in San Jose, California, during a company conference in March. After reports that Nvidia was preparing to remove Huang, the company’s shares fell more than 8% in after-hours trading. If the losses hold, Nvidia may have shed about $685 billion in market value since the company announced an internal investigation into Huang’s relationship with the businesswoman.
Huang is also facing a shareholder lawsuit alleging fraud tied to his relationship with Alice Huang, who has been described as a suspected Chinese spy. The company, one of the world’s largest chipmakers, is valued at $4.3 trillion, equivalent to 23.65 trillion Brazilian reais. The lawsuit emerged as President Donald Trump said the FBI was investigating Huang’s relationship with Alice Huang, a former executive at Singapore-based Megaspeed who is not related to the CEO. Alice Huang has publicly acknowledged having an affair with him.
A complaint filed in federal court in San Jose alleges that Nvidia and Jensen Huang misled shareholders about the executive’s alleged involvement with Alice Huang. Shareholders claim the parties withheld information about concerns that the situation raised for national security, as well as potential risks to Nvidia’s reputation and business prospects. These claims are allegations in the lawsuit.
