The Nvidia Machine Is Self-Sustaining – And Was Already Facing A Tougher Future - The Next Platform
Nvidia co-founder Jensen Huang has resigned as CEO following revelations of two affairs, with CFO Colette Kress taking over as interim replacement.
The third and most important co-founder of Nvidia, Jensen Huang, has resigned as president and chief executive officer following revelations of two affairs. Colette Kress, the company's longtime chief financial officer, has been appointed as his interim replacement.
The resignations come amid growing concerns about potential GPU exports to Chinese companies through Megaspeed International, which may have involved a Chinese government operative. Megaspeed and its affiliates have reportedly acquired $7.5 billion in GPU systems since 2023, with a sister company purchasing $4.8 billion in Nvidia GPU gear between June 2024 and February 2026.
The US Commerce Department had been investigating Megaspeed since late 2024, but those investigations reportedly stalled after President Trump and Jensen Huang developed a close relationship. The investigations have since been moved to the US Department of Justice, though their current status remains unclear.
Leadership Transition
Harvey Jones, former CEO of chip design software maker Synopsis and managing partner at Square Wave Ventures, has been appointed as chairman of Nvidia's board. This marks the first time Nvidia has had a chairman. Jones has been on the board since November 1993, shortly after the company's founding in April 1993.
The board is now conducting a CEO search to replace Huang, with Kress expected to continue as CFO under the new leadership. Huang is stepping down from his $108 million share compensation and his 3.6% stake in Nvidia, though he will retain substantial capital for future ventures.
It seems likely that Huang will try to lay low for a while, and try to heal his relationships with his wife and children. The world will likely not let him lay low.
Nvidia's Future Challenges
Despite the leadership change, Nvidia faces significant challenges. Huang was known for running a tight ship with 60 top executives reporting directly to him. However, the company's AI system roadmaps are set for the "Rubin" and "Feynman" generations of GPUs, and production is already sold out for 2027.
The company is facing increasing pressure from hyperscalers and AI model builders developing custom CPUs and XPU AI accelerators to reduce dependence on Nvidia's expensive hardware. Additionally, Nvidia's promotion of open-source Nemotron models directly competes with its largest customers' closed-source models.
Long-term concerns include supply chain constraints for components, difficulties expanding global electricity capacity, and rising public dissatisfaction with preferential treatment for datacenter operators. Huang's departure also removes a key articulate voice from an AI industry facing growing economic and societal concerns.
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