Nvidia's new CEO previously criticized Huang's risky deals
Nvidia's interim CEO, Colette Kress, spent years opposing Jensen Huang's risky investment decisions. The 59-year-old CFO must now lead the company following its co-founder's scandal-driven resignation while the board searches for a permanent successor.
According to Reuters, citing sources familiar with the matter, Kress repeatedly clashed with Huang over multibillion-dollar investments in artificial intelligence. In particular, their disagreements involved financing for OpenAI and AI infrastructure companies such as Lambda.
Some Wall Street analysts criticized these deals, arguing that Nvidia was effectively financing its own customers, who then purchased its chips. One major project initially involved $250 billion in funding to support the construction of an OpenAI data center in Ohio, but the plan was later scaled back to $120 billion.
Kress has worked at Nvidia since 2013. She previously held senior positions at Microsoft, Cisco and Texas Instruments. Colleagues describe her as a pragmatic executive capable of stabilizing the situation and reassuring investors.
Who could become Nvidia's permanent CEO?
Following the announcement of Huang's resignation, Nvidia shares plunged 14% on Thursday, reaching their lowest level in nearly 16 months. The stock subsequently recovered some of its losses and closed down 4.3%.
Some experts doubt whether Kress can maintain the aggressive innovation strategy that turned Nvidia into a leader in the AI chip market. Anshel Sag, principal analyst at Moor Insights and Strategy, considers her a suitable choice for interim leadership but questions whether she can deliver the technological breakthroughs needed to sustain the company's growth.
It remains unclear whether Kress will become Nvidia's permanent CEO. Potential candidates reportedly include Nvidia executive Ian Buck, AMD CEO Lisa Su and Arm CEO Rene Haas.
Questions about corporate oversight at Nvidia are creating additional uncertainty. According to Reuters, Kress could face questions from the U.S. Congress regarding chip sales to organizations linked to the Chinese military and management's role in overseeing these transactions.
Why did Jensen Huang leave Nvidia?
Jensen Huang resigned on November 12 following a major scandal involving his personal life and potential threats to U.S. national security. It emerged that the Nvidia chief had an extramarital relationship with Alice Huang, a former employee of Singapore-based technology company Megaspeed, whom U.S. intelligence agencies suspect of working for Chinese intelligence. Huang acknowledged the affair, but the espionage allegations remain unproven.
The situation was further complicated by reports of another relationship involving Huang and Kimberly Powell, Nvidia's vice president of healthcare, who reported directly to him. The company's board launched an independent investigation and subsequently considered removing him from his position. Huang ultimately stepped down as CEO and resigned from the board of the company he had led for more than 30 years. However, Nvidia has not officially disclosed the reason for his resignation.
As a reminder, Colette Kress was appointed Nvidia's interim CEO.
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