Jensen Huang resigns as Nvidia CEO — live updates, AI impact and what it means for computing hardware
Jensen Huang has resigned as Nvidia CEO
Who is Colette Kress?
So, who is the new Interim CEO of Nvidia? Colette Kress joined the company in September 2013 and is the executive vice president and chief financial officer. She has previously served nearly 25 years in a range of finance roles at major technology companies, including 13 years at Microsoft.
“Colette has helped lead NVIDIA through a period of extraordinary growth and has a deep understanding of our business, customers, operations and financial position,” said Harvey Jones, the newly-appointed chair of the Nvidia Board of Directors.
“She is supported by an experienced leadership team that has been instrumental in executing Nvidia’s strategy and advancing its technology roadmap. The Board has full confidence in Colette and the leadership team, and we expect the company’s operations, customer commitments and product roadmap to continue without interruption.”
Nvidia stock likely to fall further following Huang's exit
The market isn't going to officially open until 9:30 am, but Nvidia shares have already fallen 10% in U.S. premarket trading after Huang's exit was announced.
Nvidia is one of the "Magnificent Seven" tech stocks, along with the likes of Apple, Amazon and Alphabet, that collectively make up over 30% of the S&P 500. A lot of standard 401(k) plans are heavily weighted in index funds that are tied to the performance of these companies. So today's news could have a knock-on effect for a lot of people.
Huang thanked for 'immeasurable contribution'
In a press release announcing Huang's departure, Colette Kress, Interim CEO and CFO of Nvidia said: "I am committed to building on the extraordinary foundation Jensen created over the last 33 years.”
“We will continue advancing the work that has made Nvidia a leader in accelerated computing and AI, and execute on the opportunities ahead. Our focus remains on serving our customers, partners, developers and shareholders.”
The press release ended by saying the Nvidia Board and the company "thank Jensen for his immeasurable contributions to the company and the industry."
Colette Kress named Interim CEO of Nvidia
Nvidia has confirmed that, following Huang's departure, Colette Kress, current Executive Vice President and Chief Financial Officer will step into the role of Interim Chief Executive Officer.
"Kress will continue to serve as Executive Vice President and Chief Financial Officer while serving as Interim Chief Executive Officer until a permanent successor has been named," Nvidia said.
"The Board is initiating a search for a permanent Chief Executive Officer and will consider internal and external candidates."
Breaking: Jensen Huang resigns
Jensen Huang has announced his resignation as Nvidia's CEO.
Huang's departure 'unlikely' to have immediate impact on Nvidia products
Nvidia operates a famously flat structure with Jensen Huang actively involved in the company's routine operations. That said, one analyst told me his departure today is unlikely to torpedo the company's current AI focus.
"A prolonged leadership crisis could also disrupt product development or investment, but I think Jensen Huang's departure is unlikely to have any immediate effect on the price or availability of Nvidia products," said Louise Wooldridge, Senior Research Manager, Games, Ampere Analysis.
"There is also the possibility that, if Nvidia's competitive position is weakened by Huang leaving, other chipmakers (like AMD) could gain an advantage, and this stronger competition could improve the landscape for consumers.
"Overall, though, I think the commercial incentives pushing Nvidia towards AI will remain, regardless of the leadership situation, and so it is more likely that little will change in the long run."
Jensen's only official statement (so far)
This saga hit critical mass when The New York Times published a report detailing a long timeline of Huang’s alleged affair with Alice Huang, a suspected Chinese spy.
Following this report, Jensen admitted to an affair in an internal email to his staff, and while he didn’t outright admit it was with Alice Huang, the fact he spent part of his statement talking about “national security concerns,” and that he’s “proud and grateful to be an American,” seems to connect the dots.
Here's his statement in full:
I owe my family and all of you an apology.
I was unfaithful to my wife. My actions hurt her and our children. There is no excuse for what I did. I am deeply sorry.
Throughout my life, my family has given me love and support. They deserve my honesty and loyalty. Instead, I let them down and damaged the life we built together. I take full responsibility for what I did and the hurt I caused, and I accept the criticism that comes with it.
To my wife and family: I love you. I know an apology cannot undo what I have done. I hope our family will heal and that, over time, I can earn back your trust.
To my colleagues at NVIDIA, including those I have worked alongside for decades, and to our board, partners, and shareholders around the world: you deserve better from me. Leading NVIDIA is the privilege of my life. My responsibility is to serve you and be worthy of your trust. I have fallen short of that responsibility. I am fully committed to NVIDIA and will work to earn back your confidence.
Regarding the national security concerns raised in news reports, NVIDIA’s Board of Directors has initiated an independent investigation. I support the investigation and will cooperate fully. I love our country and our company. I am committed to protecting NVIDIA and supporting America’s national security. I am proud and grateful to be an American.
My family bears no responsibility for my choices. I do. Please give them privacy.
Jensen
Is Jensen Haung getting fired today?
Quite possibly. According to an exclusive report from the Wall Street Journal, Nvidia's board "is preparing to oust CEO Jensen Huang" and that it would leave "one of the world’s most valuable companies in need of a new leader."
However, there's no immediate successor who could replace the leather jacket-wearing CEO who has become the face of the current AI arms race.
Dan Ives, a tech analyst at Wedbush Securities described Huang as the "central nervous system" of the U.S. technology ecosystem. Ives went as far as calling him "irreplaceable" and warned that losing him would disrupt not just Nvidia, but the broader tech ecosystem. According to Ives, should Huang leave Nvidia, his immediate exit could trigger a 25%–30% stock drop.
What is happening at Nvidia today?
Nvidia's board has 11 members, including Huang, that are meeting today to consider whether to dismiss Jensen from his position following an internal investigation launched on November 8.
The ten other board members are independent and have the power to fire the CEO on the grounds of breaking the company's ethical standards. We are expecting a result to be announced later today on the verdict they've reached — even if that verdict is a further delay.
