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Scandal-hit Nvidia CEO Jensen Huang quits, plunging AI chipmaking giant into turmoil

Jensen Huang has resigned as chief executive of Nvidia, the company confirmed Tuesday, plunging the world's most valuable AI chipmaker into turmoil amid an...

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Jensen Huang has resigned as chief executive of Nvidia, the company confirmed Tuesday, plunging the world's most valuable AI chipmaker into turmoil amid an escalating scandal over his alleged personal relationships. The resignation, effective immediately, follows reports that US lawmakers are seeking to question Huang over whether one of those relationships involved a Chinese intelligence operative. Nvidia's board said it had accepted the departure and named an interim leadership team, while declining to comment on the allegations. The company's shares fell sharply in after-hours trading as investors grappled with uncertainty over leadership at a firm whose chips underpin much of the global artificial intelligence boom.

The controversy has drawn intense scrutiny in Washington, where members of Congress from both parties have called for hearings into potential national security implications. Lawmakers want to determine whether sensitive information or technology may have been compromised through the alleged relationship, though no charges have been filed and the claims remain unverified. Nvidia, a linchpin of the US semiconductor industry and a beneficiary of federal chip-manufacturing incentives, faces questions about governance and security vetting at its highest levels. Analysts warned that prolonged instability could disrupt supply chains and customer confidence. Huang, who co-founded the company in 1993 and became its public face, has not commented publicly. Nvidia said it would cooperate fully with any congressional inquiry.

Independent reporting synthesized from primary wires and global correspondents.

Original sourceBBC Business ↗