Nvidia Chief Executive Officer Jensen Huang has reportedly stepped down following allegations of relationships with a suspected Chinese intelligence operative and an executive at the technology company.
The $4.2 trillion technology giant has lost more than $600 billion in market value this week as the allegations rocked investor confidence.
Its shares fell more than 10 per cent in premarket trading on Thursday.
The company appointed its Chief Financial Officer and Executive Vice President, Colette Kress, as interim CEO on Thursday.
Nvidia’s board reportedly met on Wednesday night to discuss removing Huang, following allegations that his relationship with the suspected Chinese spy had triggered investigations by the FBI, the United States Congress and the California-based technology company.
The company is also facing a shareholder class-action lawsuit.
The alleged Chinese intelligence operative, identified as Alice Huang, is a former executive at Singapore-based Megaspeed, Nvidia’s primary business partner in Southeast Asia.
Founded in 2023, Megaspeed has been investigated over allegations that it helped Chinese companies gain access to its $4.8 billion stock of advanced Nvidia chips.
The allegations have raised national security concerns in the United States, which restricts advanced chip sales to China over fears that the Chinese military, intelligence agencies or companies could use the technology.
Huang, 63, is Nvidia’s co-founder, president and chief executive. He is also a close ally of US President Donald Trump and has advocated easing American restrictions on chip exports to China.
Trump said earlier this week that Huang told him he had “absolutely no idea” that he was in a relationship with an intelligence operative.
Huang owns approximately 3.6 per cent of Nvidia’s shares, making him one of the world’s richest people and a prominent figure in the artificial intelligence industry.
The sector has driven record gains in stock markets and contributed to wider economic growth.
Nvidia’s board reportedly hired a law firm to investigate the alleged relationship with Alice Huang.
The board’s meeting on Wednesday came shortly after The New York Times reported that Huang was also involved in an extramarital relationship with a Nvidia vice president who reports directly to him.
Nvidia’s shares have continued to decline since the allegations emerged, falling to a 14-year low, according to Reuters.
Faridah Abdulkadiri
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