Jensen Huang’s exit tests Nvidia’s supply chain clout, ability to bankroll AI buildout

Nvidia CEO Jensen Huang resigned on Thursday after 33 years at the helm, following news of two alleged extramarital affairs and an investigation by the company. According to City AM, the departure follows revelations of three alleged affairs, including one with a woman suspected by US intelligence of spying for China. Huang has acknowledged a relationship with Alice Huang, an executive at Megaspeed, but has not publicly confirmed reports regarding two other relationships with Nvidia employees, according to City AM.

The resignation caused significant market volatility, with Nvidia shares closing more than four per cent lower on Thursday after plunging as much as 14 per cent during the session. City AM reports that the sell-off impacted the Nasdaq, S&P 500, and Dow Jones, while Asian markets showed mixed results. During the same period, rival chipmakers Advanced Micro Devices and Broadcom both gained more than five per cent.

Industry analysts and outlets have raised questions regarding the future of the AI boom. South China Morning Post notes that Huang was a key figure driving the AI boom through personal relationships with Asian chip foundries and aggressive financial backing. Business Insider reports that Huang's ouster creates uncertainty for the AI industry and impacts Anthropic’s upcoming IPO, as the company had planned to take $10 billion in investment from Nvidia.

Axios suggests that while the tech ecosystem has developed paths around Nvidia's chips, replacing a CEO who bankrolled startups and backstopped cloud debt will be difficult.

Brief written by urgent.news from South China Morning Post, City AM, Business Insider, Axios, Investing.com — 5 reports on this story. Machine-written — may contain errors; check the original before relying on it.