Amid China-spy investigation, Nvidia CEO Jensen Huang resigns as board directors announce interim successor

Resignation and investigation

Huang's resignation took effect immediately, according to the board's announcement Thursday. The decision came amid an investigation into his affair with a woman suspected by U.S. intelligence agencies of spying for China.

Two people familiar with the matter told CBS News on Wednesday night that Nvidia's board had been preparing to remove Huang. The Wall Street Journal first reported those plans.

Kress takes interim role

Colette Kress, Nvidia's chief financial officer, will become interim CEO while continuing as CFO. Board chair Harvey Jones said the board had confidence in Kress and the leadership team.

Jones said the company expected its operations, customer commitments and product roadmap to continue without interruption. The board plans to seek a permanent CEO and consider both internal and external candidates.

Nvidia's influence and market reaction

Huang co-founded Nvidia in 1993. The company became one of the world's most valuable businesses by designing semiconductors used by many leading AI firms. Because its technology is highly sensitive, Nvidia faces export controls that limit sales to China. Its stock plunged following the leadership turmoil, potentially erasing more than $700 billion in value.