Nvidia: Nvidia boss Huang resigns after espionage scandal

The long-time boss of the world's largest chip company Nvidia, Jensen Huang, is resigning with immediate effect because of an affair with a suspected Chinese spy. The US company announced on Thursday that his duties will be temporarily taken over by the previous CFO, Colette Kress.

In the past few days there have been media reports that the 63-year-old company founder and multi-billionaire had a relationship with a woman who, according to suspicions in US security circles, could be a Chinese spy. Huang, who has been married for over 40 years, confirmed an extramarital affair in an email to Nvidia employees.

The New York Times and the Wall Street Journal also reported on Wednesday that the company boss had had another affair with a top manager of the company who reported to him. Huang and Nvidia did not comment. The shares of the chip company, which is one of the most valuable companies, fell by around seven percent in after-hours trading.

American boards of directors often have a very low tolerance level for affairs in companies; in several cases they have cost top managers their jobs.

Huang's name is inextricably linked to Nvidia: He has been the chip company's boss since it was founded more than 30 years ago and is considered the driving force behind the rise of the Silicon Valley company, which until a few years ago was primarily known for computer graphics cards and experienced a steep rise thanks to the AI ​​boom. The management structure is also exceptionally tailored to Huang. According to the media, around 60 managers report directly to him. This means he is more involved in day-to-day business than other bosses of large corporations - and also more difficult to replace.