Nvidia CEO Jensen Huang quits: Why he resigned and what happens next, full story in 5 points

Jensen Huang’s resignation as Nvidia CEO has sent shockwaves through the tech industry. The company confirmed his exit on Thursday and named CFO Colette Kress as interim CEO. The ex-Nvidia CEO recently found himself surrounded by personal controversies, as he admitted to being unfaithful to his wife in a message shared with his employees. Since the information became public, Nvidia has been in a tight spot as the company’s shares have been falling constantly. The company also hired a third-party law firm to investigate the whole situation. If you’re still unaware of the whole situation and are still wondering what led to Huang’s exit, then here is the complete story in five simple points, including what lies ahead.

1. The scandal that shook the boardroom

Huang recently admitted to an extramarital affair in a message to employees, saying, ‘I was unfaithful to my wife’  However, it’s important to note that he didn’t mention anyone in the message, but some reports suggest that he was talking about his close relationship with Alice Huang, a former executive at Singapore-based Megaspeed. The US officials suspect that she may be a Chinese intelligence asset passing information to Beijing, though China disputes the allegation.

While everyone was still processing the news, there came a second twist. The Times reported that he also had an affair with a senior Nvidia executive who reports to him. Following the report, the board moved quickly to decide his fate, and by Thursday he had resigned. While things were already rough, a shareholder lawsuit adds fuel to the fire.

Also read: Who is Colette Kress? All about Nvidia's new interim CEO replacing Jensen Huang

2. The board calls in outside investigators

The Nvidia board had previously said it hired an outside law firm to investigate Huang’s relationship and whether he was targeted by foreign intelligence.

Joon H. Kim, a former acting US Attorney in New York, leads the investigation with his firm, Wachtell, Lipton, Rosen & Katz. The board announced the probe on Sunday**, and named Kim and his firm in the days that followed.** Huang stayed on as CEO while it was underway. Four days later, he resigned.

3. A familiar face takes the wheel

Following Huang’s exit, the board has named Colette Kress, the company’s CFO, as interim CEO. While she is handling the new responsibilities, she will keep her old job too.

Board chair Harvey C. Jones said the board has full confidence in her and expects operations, customer commitments and the product roadmap to continue without interruption. Jones is also Nvidia’s first-ever board chair, a role that did not exist under Huang.

4. The hunt for the next boss

At the time of writing, the Nvidia board is exploring its options for a permanent CEO. The company says it will consider both internal and external candidates, and has reportedly been working with an outside firm to identify them.

While the company has not officially named anyone, analysts and press reports have floated Ian Buck, a key mind behind Nvidia’s CUDA software platform, and Rene Haas, head of chip designer Arm. Other names mentioned include Apple’s Johny Srouji and Huang’s daughter, Madison Huang.

Also read: Nvidia CEO Jensen Huang quits amid Chinese spy link, CFO Colette Kress now interim boss

5. The first big test arrives soon

Nvidia will share its latest financial results on November 17. At the time of writing, the company’s shares have fallen more than 10 per cent from Wednesday’s close and are roughly 35 per cent below their October 6 record. Analysts also point out that the big question is not Nvidia’s products but how well the company runs without its founder.