Nvidia's CEO Jensen Huang resigned following revelations of an extramarital affair with a woman suspected of spying for China, sending the company's stock down 4.3% in Thursday's closing trade. The scandal has raised concerns about U.S. security and prompted calls for tighter restrictions on chip exports to China.
Huang, who had close ties to former President Donald Trump, is facing scrutiny over his role in expanding access to the Chinese market and his influence on U.S. chip export policies. Lawmakers from both parties have called for stricter controls on advanced AI chips, with House Speaker Mike Johnson signaling growing consensus on limiting exports.
Nvidia's CFO Colette Kress will temporarily lead the company as it searches for a permanent successor, with internal candidates Colette Kress and Ian Buck emerging as potential choices. The scandal could have lasting implications for the AI industry, which has seen significant growth driven by Nvidia's investments in cloud providers and research labs.