On a Thursday afternoon in Santa Clara, flowers appeared at the headquarters of Nvidia, a company that had grown from a small idea into one of the most consequential engines of the age of artificial intelligence. Jensen Huang, who had led it for 33 years, stepped down amid reports of personal betrayals, including a relationship with a businesswoman whom American authorities suspect of spying for Beijing. The episode has traveled quickly from private scandal into the public machinery of trade, markets and national security, where questions about who holds the keys to the world's most sought-aft
Huang's Exit Puts Nvidia in Crisis as Congress Weighs Tighter China Chip Export Limits
A vacuum that will be difficult to fill
Mark
Why does one CEO's resignation reach all the way to the defense bill?
Mimi
Because Nvidia's chips train and run the leading AI models, and Washington has spent years trying to keep China's access limited. This case gave critics a vivid argument that policy was too weak.
Mark
Huang's personal ties to Trump come up repeatedly.
Mimi
He sat at Trump's table for Xi's state dinner and flew with him to Beijing. Democrats are asking what the White House knew and when.
Luke
Careful, though. Nobody has established that Alice Huang is a spy. The attorney general says no conclusion has been reached, Beijing denies it, and Trump says it's undetermined.
Mark
So the premise of the political push is unproven?
Luke
The suspicion is attributed to US authorities. It's driving the debate, but it isn't a finding.
Mimi
And the policy momentum is real regardless. Johnson speaks of a developing consensus, and Republicans want the defense bill as the vehicle.
Luke
That last part comes from one anonymous Senate aide, so I'd treat it as a plan, not a done deal.
Mark
And the market?
Mimi
A 13% drop in early trading, and analysts worry about slower deals rather than broken commitments.
Luke
Those are analyst projections. How the board and customers actually behave is still unknown.
O Pulso
- Nvidia's shares plunged 13% in early trading, sending a shock through markets from Seoul to Tokyo.
- Huang's resignation followed reports of affairs, including one with a woman the FBI and Justice Department are examining as a suspected Chinese spy.
- Lawmakers from both parties are racing to tighten AI chip export limits, with Republicans eyeing the must-pass defense authorisation bill as their vehicle.
- Senate Banking chair Tim Scott has summoned Huang and Commerce Secretary Lutnick to testify and is threatening a subpoena if they refuse.
- Colette Kress steers the company as interim CEO while the board weighs internal and outside candidates, with the outcome still wide open.
On a Thursday afternoon in Santa Clara, flowers appeared at the headquarters of Nvidia, a company that had grown from a small idea into one of the most consequential engines of the age of artificial intelligence. Jensen Huang, who had led it for 33 years, stepped down amid reports of personal betrayals, including a relationship with a businesswoman whom American authorities suspect of spying for Beijing. The episode has traveled quickly from private scandal into the public machinery of trade, markets and national security, where questions about who holds the keys to the world's most sought-after chips now press on Washington with new urgency.
Flowers were left outside Nvidia's Santa Clara headquarters on Thursday, a quiet tribute to Jensen Huang, who resigned that day after 33 years leading the company he co-founded. His exit followed reports of extramarital affairs, including one with a businesswoman, Alice Huang, whom US authorities suspect of spying for China. Huang has admitted infidelity to his wife without naming anyone, and he denies knowing that Alice Huang allegedly worked for Beijing. Beijing denies she is a spy, and she has not spoken publicly.
Nvidia has handed the top job to Colette Kress, its chief financial officer, who will serve as interim CEO and interim CFO until the board chooses a permanent leader. Candidates floated include Ian Buck, Rene Haas and Lisa Su, a rival chief executive and a distant cousin of Huang. The markets responded harshly, with Nvidia shares falling sharply and analysts warning that new deals could take longer or cost more.
In Washington, the reaction has been swift. Lawmakers from both parties want tougher limits on AI chip exports to China, and Republicans hope to attach them to the defense authorisation bill. Senator Tim Scott has asked Huang and Commerce Secretary Howard Lutnick to testify and has raised the possibility of a subpoena. Democrats want to know what the administration knew and what President Trump knew when he hosted Huang on a trip to Beijing. Trump, who had urged Huang to fight for his job, now says the answer depends on whether the woman was a spy, a question still unresolved.
Flowers were left outside Nvidia's headquarters in Santa Clara on Thursday afternoon, an apparent tribute to Jensen Huang, who resigned that day after 33 years leading the company he co-founded. His departure followed reports of extramarital affairs, including a relationship with a businesswoman, Alice Huang, whom US authorities suspect of spying for the Chinese government, and two relationships with company employees.
On Sunday, Huang admitted he had been unfaithful to his wife, Lori, without naming anyone. He has denied knowing that Alice Huang allegedly worked for Beijing. The two were seen together around the world over the past few years, at restaurants and meetings. Beijing denies she is a spy, and she has not spoken publicly. Attorney General Todd Blanche said the Justice Department has reached no conclusion, though he said the FBI is "of course" investigating the reports.
Nvidia named its chief financial officer, Colette Kress, interim CEO. Kress is 59 and joined the company in 2013 after nearly 25 years at firms including Cisco and Microsoft. She will hold the CEO job and serve as interim CFO until the board picks a permanent successor. Harvey C Jones, newly named board chair, said the board has full confidence in her. The board is weighing internal and external candidates. Names floated include Ian Buck, who runs Nvidia's AI hardware and software products; Rene Haas, CEO of Arm Holdings and a former Nvidia vice-president; and Lisa Su, CEO of rival AMD and a distant cousin of Huang. Donald Trump posted that only Tim Cook of Apple could take his place.
Markets reacted sharply. Nvidia shares plunged 13% in early trading after the news, then fell another 3% after hours. In Asia on Friday, a broad regional index outside Japan rose 0.26% after a 1.3% drop the day before, South Korea's Kospi gained 2.35% and Japan's Nikkei added 1.4%. Naver, a South Korean Nvidia customer, fell 2.75%. JP Morgan analysts said Huang's exit leaves a vacuum and that new deals could take longer or cost more, though they do not assume existing commitments change. Citi's Jon Zauderer said AMD, Arista and Broadcom could benefit as investors look for alternatives.
The political fallout is moving fast. House Speaker Mike Johnson said a consensus is developing in Congress to limit chip exports to China. A Senate aide told Reuters that Republicans want to attach new restrictions on advanced AI chip exports to the annual defense authorisation bill, a must-pass measure that usually draws bipartisan support. Representatives from both parties have called for tougher limits over the past week.
Senate Banking Committee chair Tim Scott, a Republican, has asked both Huang and Commerce Secretary Howard Lutnick to testify, citing national security concerns, and said he would consider subpoenaing Huang if he does not appear voluntarily. Lawmakers are also asking whether the government properly oversaw Nvidia's exports to China. Senate Democratic leader Chuck Schumer wants to know what the administration did once it learned of the relationship, and what Trump knew when he invited Huang aboard Air Force One for a state visit to Beijing earlier this year. House Democratic leader Hakeem Jeffries is demanding a classified briefing for all members and called Huang's resignation the "right thing."
Trump, for his part, called Huang two days before he quit and urged him to fight for his job, the New York Times reported. Huang sat at Trump's table at the September White House state dinner for Xi Jinping. In a podcast interview with Stephen A Smith, Trump called him "a tremendous talent" and said he is "going through hell." Asked whether Huang should have resigned, Trump said it depends on whether the woman was a spy, which he said has not been determined.
What to watch: whether chip limits land in the defense bill, whether Scott issues a subpoena, what the FBI finds about Alice Huang, and who the board chooses to lead a company with a market value near $4tn.
Citações Notáveis
I think there's a developing consensus in Congress that is an important position to take.— House Speaker Mike Johnson
The American people deserve answers.— Senate Banking Committee chair Tim Scott
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Leia o original em The Guardian ↗