Nvidia’s CEO Jensen Huang stepped down on Thursday following the emergence of his extramarital affair with a purported Chinese spy, which raised concerns regarding national security.
The company has appointed Colette Kress, the current executive vice-president and chief financial officer, as the interim CEO.
Huang faced increasing pressure to resign after it was disclosed that he was involved with Alice Huang, a former executive at Megaspeed who is suspected of being connected to the Chinese government.
A report from the New York Times on Wednesday evening indicated that Huang also had an affair with an Nvidia employee who is under his supervision.
On Thursday, the board of directors announced the appointment of Harvey C. Jones as the firm’s first-ever chairman. Jones is an entrepreneur and investor.
Shares of Nvidia, one of the world’s largest corporations, fell by approximately eight percent at the opening of the trading session on Thursday.
In its first communication since the scandal broke, Megaspeed International, headquartered in Singapore, stated on Thursday that it takes its duty to adhere to U.S. export control laws “extremely seriously.”
“Megaspeed is dedicated to collaborating constructively and transparently with the U.S. government,” the statement, signed by chairman and CEO Tan Yong Pong, also known as James Tan, read.
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Nvidia has asserted that it had “no reason to believe” that either national security or Nvidia’s proprietary information had been compromised, but it will conduct an investigation to review all relevant information.
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Details surrounding Huang’s relationship with the alleged Chinese spy remain unclear. The New York Times reported that the woman involved was Alice Huang, also known as Huang Le, who held a senior position at Megaspeed. The company prominently advertises its partnership with Nvidia on its website, and the two individuals are not related.
Last month, the Times revealed that U.S. intelligence agencies had found that Nvidia’s Huang had formed a close relationship with Alice Huang and had determined that she was supplying information directly to Beijing.
On Sunday, U.S. President Donald Trump declared that the FBI was looking into the matter.
Megaspeed faced allegations last year regarding the illicit shipment of advanced Nvidia chips to China, but in December, the company stated there was “no evidence” to support such claims. Singapore has also announced it is investigating 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 efforts to trap Huang. Nvidia has emerged as a leader in manufacturing chips that power artificial intelligence, and Huang has advocated for the U.S. government to ease restrictions on the sale of Nvidia chips to China.
In January, he secured approval from Trump to sell H200 chips to China.
Megaspeed announced on Thursday that it has cooperated with the U.S. Department of Commerce’s Bureau of Industry and Security (BIS), which oversees the enforcement of national security regulations 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 compliance with export controls.
“Megaspeed welcomes appropriate governmental scrutiny and is dedicated to showing through concrete actions that it operates responsibly, transparently, and in accordance with relevant U.S. laws,” the statement read.
In addition to concerns regarding national security, Megaspeed’s financial situation has also attracted attention. Its total assets reportedly increased by nearly 90 times from late 2023 to 2024, approaching $3 billion U.S., according to corporate records from Singapore.
Revenue skyrocketed to over $294 million U.S. in 2024, up from none in 2023.