Jensen Huang Resigned: It seems like a watershed moment for the world's most valuable GPU/chip-making company, Nvidia. The company that came out with its Blackwell Architecture is definitely facing some black days, as ghosts from the past have come to haunt Nvidia's chief, Jensen Huang, who has finally resigned.

Bloomberg reports that Jensen Huang was going through a rather tiring week, citing people familiar with the matter. "Whatever" and "I don't care" are a few words uttered by the Nvidia chief before he finally stepped down. This was a change from his usual mood and energy that he is known for in Silicon Valley, recent days had made him a bit apologetic.

ALSO READ: Is Vi's New Rs 35 Data Pack Better Than Jio And Airtel Data Plans? Check OTT Benefits That Last 28 Days

Why Did Jensen Step Down? A Cycle Of Denial And Accusations

Jensen Huang was suspected of being in a relationship with a businesswoman suspected to be a Chinese spy by U.S. Intelligence, Alice Huang, reports said. But initially, Jensen had denied these accusations in front of his friends and even colleagues.

In one of his last interviews, while he still held the position of CEO, he told Bloomberg that the relationship he had with Alice Huang was similar to what he had with other Chinese customers and executives, he said, “It was all completely normal and not unusual".

But soon enough, reports started coming out. On November 6, the Financial Times reported that the relationship was indeed romantic. Then Nvidia's general counsel and board secretary, Tim Teter, finally addressed this issue and faced Huang and confronted him about the truth, to which Jensen confessed, according to the report.

This prompted an investigation by the company into the matter, following this, on Sunday he had emailed his employees as well as family with an apology, admitting to his affair.

The revelations didn't end there New York Times reported on Wednesday about another affair that he had with Nvidia's Vice President of healthcare, Kimberly Powell. Bloomberg reports that, after a meeting of directors that went after hours, Huang was left with the only option, which was to resign. Huang was left with no seat or role at the company 33 years after he had built it.

Now CFO Colette Kress is taking the seat as an interim chief as the company looks for a new leader of what is now the world's most valuable firm. Jensen Huang was the face that everyone was familiar with when it comes to Nvidia, Kress definitely has some big shoes to fill.

What Happened, Resignation Aftermath and What's Next For Nvidia In 10 Points

  1. Huang's Immediate Resignation- Jensen Huang, who had been Nvidia's chief for the past 33 years, was asked to step down immediately, a company he co-founded in 1993, a face every industry baron and customer was familiar with.
  2. The Catalyst- Huang found himself in the middle of a storm, where reports of him engaging in twin marital affairs emerged, the main headline was taken by Alice Huang, a businesswoman who is suspected to be a Chinese spy by U.S. intelligence.
  3. Interim Leadership- As Huang stepped down after the controversy appeared, Nvidia appointed its Chief Financial Officer (CFO) Colette Kress as its interim chief, as a search for a new CEO goes on.
  4. First Ever Board Chair Appointed- Harvey C. Jones, who had served as a long-time board member and was also a CEO at Synopsys, was appointed as Nvidia's first-ever board chair.
  5. Market Reaction, Company Takes A Hit On Stocks- Nvidia saw a major bear run after the news came out, and the company's stock took a hit and went down around 13% initially, although when the market closed it recovered from some losses, closing 4.3% lower. Speculation added that the company's valuation might go below its current $4 trillion mark.
  6. Political Implications- For now, Huang has agreed that he would be testifying before the U.S. Congress before Thanksgiving, according to the latest reports. There are concerns over national security and chip exports to China that were categorically blocked during the Trump administration.
  7. Legal Implications- Nvidia and Huang now find themselves in the middle of a lawsuit by shareholders who have alleged that they were misled and risks were not made clear. They are also questioning the background of the affair and what implications it has for security.
  8. Continuity and Uncertainty- As of now, the company says the workflow, its product roadmaps and relationship with customers will continue as they have.
  9. Search for New Leadership- The company is now looking out for a fit candidate both in its internal circle as well as externally. Some big names in the industry have made an appearance, like Rene Haas, Arm CEO and Lisa Su, AMD CEO, who could be possible successors. Tim Cook, Apple's former CEO was also suggested by Trump.
  10. What's Next?- Nvidia's image has definitely taken a hit, but, pertaining to the ever-growing chip demand due to the surge in AI-related products, the company could be shielded after the initial shock it experienced.

As this episode unfolds in Nvidia's history, it can be speculated that it is going to hamper some relationships, both for the company as well as in Huang's personal life. As of recently Elon Musk had also said that it would be an honour to have Jensen Huang in his company.

Reuters also reported an alleged third extramarital affair he had on 12 November with an unnamed Nvidia employee. So, for now, it seems unclear what Jensen Huang's professional steps will be, as he will soon face the U.S. Congress, and legal repercussions await.