Nvidia enters a new chapter without the leader who built it. Jensen Huang, who founded the company in 1993 and turned it into the central supplier of the chips that power artificial intelligence, resigned as chief executive this week. Chief Financial Officer Colette Kress has stepped in as interim CEO while the board searches for a permanent successor.
Huang's departure followed reports of personal relationships, including one with a businesswoman whom U.S. intelligence officials have said they suspect of ties to foreign intelligence services. Attorney General Todd Blanche confirmed federal authorities are investigating, though he declined to detail the scope of the inquiry. Separately, investigators are reportedly examining whether a company connected to the matter was involved in the movement of restricted American computer chips, a question that touches on long-running U.S. export controls meant to limit the flow of advanced semiconductors to certain overseas markets.
The news rattled markets. Nvidia shares fell roughly 13 percent over the past week, erasing about half a trillion dollars in market value, before stabilizing somewhat on Friday. Because Nvidia's chips underpin so much of the current boom in AI infrastructure spending, its leadership turmoil has prompted analysts to describe the company as something like the financial backbone of the AI industry, meaning any uncertainty at the top reverberates across chipmakers, cloud providers, and AI startups that depend on its hardware. Rival chip companies, including Cerebras, have seen renewed investor interest this week as some traders look to separate concerns about Nvidia's corporate governance from the broader, still-strong demand for AI computing power.
In Washington, the episode has become part of a larger conversation about technology and national security. House Speaker Mike Johnson said the situation could build momentum for tighter restrictions on chip sales to China, while House Democratic leader Hakeem Jeffries said Congress needs more answers about what happened. Neither has called for new legislation yet, but both signaled the issue will get attention once lawmakers return to a full session.
Nvidia's board will need to decide how quickly to name a permanent CEO, and investors will watch whether Kress maintains the company's roadmap for its next generation of AI chips. The federal investigation into chip movement will also be one to track in the weeks ahead.
Who is running Nvidia now?
Chief Financial Officer Colette Kress is serving as interim CEO while Nvidia's board searches for a permanent replacement for Jensen Huang.
Why did Nvidia's stock drop?
Investors reacted to the sudden leadership change and the uncertainty around an ongoing federal investigation, sending shares down about 13% over the week.