Jensen Huang, the co-founder who built Nvidia into one of the world’s most valuable companies, has resigned as CEO. He was caught up in a scandal over reported extramarital affairs, one of them with a woman U.S. intelligence reportedly concluded was a Chinese spy.
Nvidia’s board announced Thursday that Huang had resigned as president, chief executive officer and board member, effective immediately. The move ends his 33 years leading the chipmaker.
Chief Financial Officer Colette Kress was named interim CEO and will keep her CFO duties while the board searches for a permanent replacement. The board will consider both internal and external candidates. It also named Harvey C. Jones, a director since 1993, as its first-ever chair.
“Jensen’s contributions to NVIDIA are profound. NVIDIA is one of the most consequential technology companies in the world,” the board said. “The Board and the company thank Jensen for his immeasurable contributions to the company and the industry.”
Kress said she is “committed to building on the extraordinary foundation Jensen created over the last 33 years.”
Nvidia shares fell about 4% Thursday, capping a brutal stretch for investors. The company has lost about $1.7 trillion in market value since hitting a record on Oct. 6.
The downfall came fast. Over the weekend, Huang sent employees an internal message admitting he had been “unfaithful” to his wife. The admission followed reports about his relationship with Alice Huang, a former executive at Megaspeed, a Singapore company that buys Nvidia hardware. U.S. intelligence reportedly determined she was a Chinese spy. Nvidia had earlier said Huang’s dealings with her were “not unusual or unexpected” and part of his job.
The board then opened an independent investigation. On Monday, the first trading day after the news, the stock fell more than 5%.
Things got worse midweek. Reuters reported that the board was meeting to decide Huang’s future after reports of a second relationship, this time with a senior Nvidia executive who reported directly to him. The Wall Street Journal reported that the board was preparing to push him out.
The national security angle has drawn the attention of Congress. Florida Republican Rep. Brian Mast said Huang has signaled he is willing to testify, adding that his resignation “does change the dynamic” around his possible testimony. Lawmakers’ concerns have centered on whether industry information or company secrets could have reached foreign intelligence.
Huang has stayed largely silent in public, and Nvidia’s announcement of his departure included no comment from him.
According to a person familiar with the calls, President Trump spoke with Huang by phone several times this week to check on him and urge him to fight calls to step down.
Huang co-founded Nvidia in 1993 and turned it from a graphics chip maker into the dominant supplier of the chips that power the artificial intelligence boom. The company holds about 80% of the market for AI chips.
Now Kress takes over a company that is suddenly without the founder who defined it, at a time when Wall Street is already nervous about AI stocks.
[READ MORE: Alito Warns Congress Could ‘Turn Off the Lights’ at the Supreme Court]
