Jensen Huang resigns as Nvidia CEO amid alleged Chinese Spy scandal; Colette Kress named interim head

Nvidia CEO Jensen Huang has resigned amid mounting scrutiny over his reported relationship with a Chinese businesswoman suspected of having links to Beijing's intelligence network. The company's Chief Financial Officer, Colette Kress, will take over as interim chief executive as Nvidia begins the search for a permanent successor, according to a Reuters report.

The controversy has put the $4 trillion technology giant under pressure, with concerns growing over possible security risks, corporate governance and the potential impact on the wider artificial intelligence industry.

Huang, who has acknowledged having an affair with Alice Huang, a Chinese businesswoman with whom he shares a surname but no known family relationship, has also reportedly faced questions over his alleged relationship with another Nvidia executive, Kimberly Powell, the company's vice president of healthcare. The allegations have added to scrutiny of his conduct and the company's internal policies.

Huang reportedly apologised to Nvidia employees in a letter, admitting to being unfaithful to his wife, Lori Huang, and violating her trust. The couple have been married for nearly four decades and met while studying engineering.

Nvidia's board had initiated an independent investigation into the matter, with law firm Wachtell, Lipton, Rosen & Katz leading the inquiry. The company is also facing questions over its dealings with Megaspeed, a Singapore-based business allegedly linked to efforts to route advanced chips to buyers despite US restrictions on exports to China.

How the allegations surfaced

The controversy had been flagged months before the latest developments. On May 13, 2026, US short-selling firm Culper Research published a 40-page report examining Huang's alleged links with Alice Huang and Nvidia's relationship with Megaspeed.

According to the report, a copy of which was cited by ANI, Nvidia had repeatedly supported Megaspeed, described as its largest Southeast Asian chip buyer, despite investigations by US Commerce Department and Singapore authorities.

"Nvidia CEO Jensen Huang has not only vouched for Megaspeed, but seems to have quite literally walked alongside Megaspeed at every step, while maintaining an uncomfortably close relationship with Megaspeed’s Alice Huang, a Chinese national," the report alleged.

It further claimed that Huang was first seen partying with Alice Huang in June 2024 and later dined with her in Taiwan in May 2025. Citing a current Megaspeed employee, the report also alleged that Huang visited data centres linked to the company every few months, accompanied by representatives from Alibaba.

The report quoted the employee as describing the relationship with Huang as "very close". It also cited a former Nvidia employee who suggested that several staff members had questioned whether a special relationship existed.

Separately, The New York Times reported allegations concerning Huang's relationship with Kimberly Powell, adding another layer to the controversy.

Political and national security concerns

The allegations have also drawn attention in Washington, particularly because of Nvidia's central role in the US technology sector and the ongoing competition with China over artificial intelligence.

US intelligence agencies had reportedly raised concerns months ago about Alice Huang's possible links to China's Ministry of State Security. Secretary of State Marco Rubio is said to have alerted President Donald Trump to the suspicions.

China has denied any intelligence links to Alice Huang. Huang has reportedly told Trump that he was unaware of any possible connection between her and Chinese intelligence.

Trump publicly backed the Nvidia chief on Monday, telling reporters: "I just know Jensen very well. I just think he’s a very honourable man".

The controversy has also raised questions about the US administration's approach to chip exports to China. Huang had reportedly lobbied against restrictions on advanced chip sales to Beijing, arguing that US companies should retain access to the Chinese market. Trump subsequently allowed Nvidia to sell a less advanced generation of chips to China in exchange for a share of the proceeds for the US government.

The issue has exposed differences within the administration, with Rubio reportedly raising national security concerns while Commerce Secretary Howard Lutnick has favoured using Nvidia's technological advantage to generate revenue through exports.

Huang's political links have come under further scrutiny after reports that he was not initially included in the list of business leaders accompanying Trump on his May visit to China. However, Trump later arranged for him to meet Air Force One during a refuelling stop in Alaska and join the presidential delegation.

Meanwhile, the House of Representatives Foreign Affairs Committee has sought a closed-door briefing from Huang and reportedly threatened to issue a subpoena if he does not appear. The scrutiny could intensify when Democrats take control of Congress next year.

What Huang's exit means for Nvidia and AI

Huang built Nvidia from a maker of graphics chips for gaming computers into a central player in the global AI industry. Its processors power major artificial intelligence companies and have helped the US maintain its lead in the sector.

His departure raises questions about leadership continuity at a company where he exercised considerable control. Reports suggest that around 60 department heads reported directly to him, leaving Kress with the challenge of managing a complex organisation while maintaining its pace of innovation.

As CFO, Kress is familiar with Nvidia's finances and operations, but she will now have to oversee its wider business and technological strategy while the board searches for a permanent chief executive.

The uncertainty has also weighed on Nvidia's shares. The stock fell from a record high of $243.37 on October 6 to $160.98 on Thursday, a decline of nearly 35 per cent. The company, which had been the most valuable in the US, also lost its top position to Apple as the controversy unfolded.

Huang's reported net worth fell to around $148 billion on Wednesday, taking him from sixth to 12th place on the Forbes billionaire ranking.

The impact could extend beyond Nvidia. Major AI companies depend on its chips, and any disruption to its operations or supply chain could affect the wider technology sector. The AI boom has also been a major driver of the stock market rally, meaning prolonged uncertainty could have consequences for investors and retirement funds.

The developments come at a sensitive time for US-China relations, with Trump scheduled to travel to China for the Asia-Pacific Economic Cooperation (APEC) summit next week, where he is expected to meet Chinese President Xi Jinping.

Even if no trade secrets were passed to China, the allegations and the uncertainty surrounding Nvidia could create an opening for Beijing as Washington seeks to maintain its lead in artificial intelligence.

(With agencies' inputs)