Nvidia’s CEO Jensen Huang stepped down on Thursday following concerns regarding national security linked to his extramarital affair with a woman suspected of being a Chinese spy.
The firm has appointed Colette Kress as the interim CEO. She currently serves as the executive vice president and chief financial officer.
Huang faced mounting pressure to resign after it was revealed that he was involved in a relationship with Alice Huang, a former executive at Megaspeed who is believed to be connected to Chinese governmental activities.
On Wednesday evening, the New York Times disclosed that Huang was also having an extramarital relationship with an Nvidia staff member who reports directly to him.
On Thursday, the board of directors announced the appointment of Harvey C. Jones as the company’s first chairman. Jones is known as an entrepreneur and investor.
Shares of Nvidia, one of the world’s largest corporations, dropped approximately eight percent at the beginning of Thursday’s trading session.
In its initial statement since the scandal emerged, Megaspeed International, based in Singapore, affirmed its serious commitment to adhering to U.S. export control regulations.
“Megaspeed is dedicated to collaborating openly and constructively with the U.S. government,” stated the message signed by its chairman and CEO, Tan Yong Pong, also known as James Tan.
-
How China gets around the U.S. ban on Nvidia chips
-
Who is Alice Huang? Alleged Chinese spy, businesswoman involved with Nvidia CEO
Nvidia stated that it had “no reason to believe” that either national security or the company’s secrets were compromised, but its investigation would encompass all pertinent information.
Trump says FBI investigating
Details surrounding Huang’s affair with the alleged Chinese spy remain unclear. According to the New York Times, the woman in question is Alice Huang, also referred to as Huang Le, a senior executive at Megaspeed, which prominently highlights its partnership with Nvidia on its website. The two are not related.
Last month, the Times reported that U.S. intelligence agencies had found that Nvidia’s Huang had developed a close association with Alice Huang and concluded that she was relaying information directly to Beijing.
On Sunday, President Donald Trump announced that the FBI is conducting an investigation.
Megaspeed was accused last year of illegally exporting advanced Nvidia computer chips to China, but in December, the company claimed there was “no evidence” of such shipments. Singapore has also stated it is looking into these allegations.
U.S. tech giant Nvidia’s shares tumbled after CEO Jensen Huang admitted to an affair with a woman accused of spying for Beijing. Andrew Chang breaks down what we know so far and what the scandal means for the world’s most valuable AI chipmaker.
China has denied any involvement in an attempt to compromise Huang. Nvidia has established itself as a frontrunner in producing chips that drive AI technology, and Huang has advocated for Washington to relax restrictions on the sale of Nvidia chips to China.
In January, he received approval from Trump to sell its H200 chips to China.
On Thursday, Megaspeed stated it has been cooperating with the U.S. Department of Commerce’s Bureau of Industry and Security (BIS), which oversees the enforcement of national security restrictions on technology exports, and is prepared to “fully cooperate with any other relevant U.S. government authority.”
The company mentioned that it has engaged a U.S. law firm to conduct a “comprehensive census” of its computer chips and to verify its export controls.
“Megaspeed embraces appropriate government scrutiny and is dedicated to demonstrating through tangible actions that it operates responsibly, transparently, and in compliance with applicable U.S. laws,” it emphasized.
In addition to national security concerns, Megaspeed’s financial situation has attracted attention. According to corporate records in Singapore, its total assets surged nearly 90 times from late 2023 to 2024, reaching almost $3 billion U.S. dollars.
Revenue increased to over $294 million U.S. dollars in 2024, a significant rise from none in 2023.