Huang seemed ‘broken’ before quitting Nvidia, report says

Jensen Huang's last hours as Nvidia chief executive were marked by resignation in more ways than one. According to Bloomberg, Huang looked "broken and shattered" by the end. After weeks of denying allegations of infidelity and fighting to keep his job, he surrendered unconditionally late Wednesday night, Nov. 11. A person familiar with the situation told Bloomberg that his usual take-charge manner had disappeared and that he had started saying things like "whatever" and "I don't care." Fortune, summarizing Bloomberg's reporting, added that Huang had also called himself a "piece of sh–."fortune.com+1

Huang's collapse ended a 33-year run at the company he co-founded. The board announced his resignation as president, CEO and director on Thursday, Nov. 12, effective immediately, according to Nvidia. Chief Financial Officer Colette Kress will serve as interim CEO while also staying on as CFO, and Harvey C. Jones was named the board's first-ever chair. The company's SEC filing shows the board accepted the resignation on Nov. 11, The Register reported.investor.nvidia.com+1

A swift unraveling

The scandal broke after The New York Times reported that Huang had a relationship with Alice Huang, a Megaspeed executive who U.S. intelligence agencies concluded was spying for China. The two are not related. In a Nov. 8 memo, Huang admitted he had been "unfaithful to my wife," and the board opened an independent investigation, ABC7 reported. Beijing called the spy allegations "groundless." The Times then reported on Nov. 11 that Huang had a second affair, this one with Kimberly Powell, Nvidia's vice president of health care, CNBC noted. Since his exit, Reuters has reported a third relationship with another employee, Business Standard reported.cnbc.com+3

A company built around one man

Fortune, citing the Financial Times, described Huang as running Nvidia with "imperial control," like a "feudal system." One source called the company a "cult." According to Fortune, Nvidia had no board chair and no compliance officer. Fortune also cited The Wall Street Journal's report that Huang once called Kress "a deer in the headlights."fortune.com

Fallout ahead

Nvidia shares closed down 4.3% on Thursday, ABC News reported. Sen. Tim Scott has called Huang and Commerce Secretary Howard Lutnick to testify before the Senate Banking Committee next month, Fortune reported, citing the Times. Nvidia will still report third-quarter results on Tuesday, Nov. 17, as planned, the company said.abcnews.com+2

Wedbush analyst Dan Ives summed up how fast it happened: "What seemed impossible a week ago is now a reality."