Nvidia CEO and co-founder Jensen Wong resigned following revelations of a second extramarital affair, prompting the company to appoint CFO Colette Crest as interim CEO while searching for a permanent replacement amid speculation about potential successors. Despite the controversy and a 10% drop in Nvidia’s stock, Wong remains a highly influential figure in the AI industry, with the company’s future leadership decisions seen as crucial to maintaining its competitive edge.
Jensen Wong, billionaire co-founder and CEO of Nvidia, resigned on Thursday morning following reports of a second extramarital affair with an Nvidia employee. This came shortly after he admitted to a previous relationship with another tech executive suspected by intelligence officials to be a Chinese spy. In response, Nvidia’s board appointed CFO Colette Crest as interim CEO and announced a search for a permanent replacement, considering both internal and external candidates. The board expressed gratitude for Wong’s significant contributions to Nvidia and the broader tech industry over the past 30 years.
The resignation follows mounting scrutiny over Wong’s personal conduct, including the alleged affair with Kimberly Powell, Nvidia’s vice president of healthcare who reported directly to him. Speculation about potential successors has already begun, with internal candidates such as Crest, CTO Michael Kagan, former EVP Jay Puri, and VP Ian Burke being discussed. External names mentioned include Lisa Sue of AMD, former Google CEO Eric Schmidt, Apple’s chief hardware officer Johnny Srouji, and Renee Hus, CEO of ARM. Analysts have also suggested the possibility of a co-CEO structure to manage Wong’s diverse responsibilities.
High-profile figures have weighed in on the situation, with Elon Musk expressing support for Wong and indicating he would be honored to hire him. Musk also echoed sentiments from Sequoia Capital partner Sha Maguire, who acknowledged Wong’s mistake but emphasized his irreplaceable role in America’s AI leadership. Despite the controversy, Wong remains one of the wealthiest individuals globally, with an estimated net worth of $131.7 billion as of Thursday morning, though this marks a significant drop from his $155 billion valuation prior to the affair’s confirmation.
Nvidia’s stock reacted negatively to the news, falling 10% after the market opened on Thursday. The company’s future leadership and strategic direction are now under close watch as the board conducts its search for a new CEO. The situation has also sparked personal speculation about Wong’s marriage to his wife Lorie, with rumors of a potential divorce after 41 years of marriage and the possibility of a substantial financial settlement.
Overall, Jensen Wong’s resignation marks a significant turning point for Nvidia amid the ongoing AI boom. The company faces the challenge of maintaining its leadership position in the industry while navigating the fallout from its founder’s personal controversies. The board’s decision on Wong’s successor will be critical in shaping Nvidia’s future trajectory in the competitive semiconductor and AI markets.