Chinese AI shares tumble after Nvidia's Jensen Huang resigns

Nvidia CEO Jensen Huang is resigning from his position, marking a significant setback for the artificial intelligence industry. As the man who transformed the company into an AI powerhouse, his departure leaves the organization in uncertainty. CFO Colette Kress will serve as interim CEO while the company searches for a permanent successor, both internal and external candidates being considered.

Huang, who owns about 3.61% of Nvidia, will also relinquish his board position. Former Synopsys CEO Harvey Jones has been appointed as the first-ever board chair. Nvidia's stock plummeted more than 12% in early trading, potentially resulting in a loss of $500 billion in market value and negatively impacting the broader market. The controversy surrounding Huang intensified due to allegations of an affair with a Chinese businesswoman suspected of spying for Beijing and another with a senior company executive.

These claims have prompted a board investigation into whether Huang was the victim of a foreign intelligence operation. Despite this turmoil, Huang's rock-star status remains intact, with fans lining up to meet him at events and his leadership instrumental in shaping Nvidia's technology roadmap for the next several years.