Nvidia CEO Jensen Huang resigns with immediate effect; US stocks fall

Jensen Huang, chief executive of chipmaker Nvidia, has resigned from the post with immediate effect. He stepped down on November 12. The news set off turbulence in the US stock market.

The matter has emerged amid the technology tussle between the US and China. The US has placed curbs on China over certain items critical to technology, and no country can sell such items to China without asking the US. China is working to make itself self-reliant, but still has to depend on the US for some things, such as chip-making.

Against this backdrop, Huang one day sent an email to all office employees. In it he said he had cheated on his wife and had illicit relationships with two other women. In the email he admitted that he had wronged his wife.

The email caused a stir in the US. It was then reported that one of the two women could be a Chinese spy, and she is suspected of having worked to get Nvidia chips sold to China. The company then announced an investigation into Huang.

Huang is also a co-founder of Nvidia. He started the company in 1993 and led it for 33 years. Under his leadership the company grew from making graphics cards to AI chips and data centre technology. In the past few years, with rising demand for artificial intelligence, Nvidia came to be counted among the world's most important technology companies. Huang is regarded as one of the most influential people in the AI sector.

For this reason, his resignation is not seen as limited to a single company. It is being viewed as a major change for the entire AI industry. The company has named Chief Financial Officer Colette Kress as interim CEO. A process to choose a permanent successor has also begun.

News of the resignation caused heavy turmoil in the US stock market. As trading began, all three major indices, the Dow Jones, the S&P 500 and the Nasdaq, recorded declines. The Nasdaq was hit hardest. Investors are anxious about what the change of leadership at Nvidia will mean for the company's future and for investment in the AI sector. Other related companies are also feared to be affected.

Three main reasons are being cited for the resignation. The first is the allegations of illicit relationships. Huang was accused of having extramarital relationships with two women. According to reports, one of them is under suspicion of espionage activities linked to China.

The second is the issue of national security. Concern was raised in the US over whether Nvidia's sensitive information may have reached China through that woman. The company's board had begun a separate investigation on November 8. However, no evidence has so far emerged that company secrets or national security information were leaked.

The third is mounting pressure on the company, as the matter raised questions over Huang's leadership. The board is said to have been discussing his future. He then finally resigned with immediate effect on November 12.