Nvidia CEO Jensen Huang to step down in big blow to AI boom

Nvidia's CEO, Jensen Huang, announced his decision to resign, dealing a significant blow to the artificial intelligence (AI) sector and casting uncertainty over the company's future. As the AI industry's biggest advocate, Huang's departure leaves the company without one of its most influential leaders. In response, Nvidia's Chief Financial Officer, Colette Kress, will serve as interim CEO while the company searches for a permanent replacement.

In an effort to ensure stability and continuity, the company also appointed Harvey Jones, a former Synopsys CEO and board member, as its new first-ever board chairman.

Huang, who co-founded Nvidia and remains its fourth-largest investor with a stake of approximately 3.61 percent, will also relinquish his position on the board. The news of Huang's resignation sent Nvidia's shares plummeting more than 10% in premarket trading, impacting the broader market.

Speculation about Huang's departure had been growing in recent days following reports that the 63-year-old CEO had an affair with a Chinese businesswoman suspected of spying for Beijing. These allegations prompted Nvidia's board to convene on Wednesday to deliberate on his resignation, with sources revealing that reports of an extramarital affair with a senior company executive who reported to him further fueled the controversy.

Huang's exit from Nvidia, a company valued at $4 trillion, leaves the AI industry and the chipmaker's future in question.