Nvidia CEO and co-founder Jensen Huang has reportedly stepped down from his position following serious allegations involving an alleged relationship with a suspected Chinese intelligence operative and an Nvidia executive. The development has sent shockwaves through the global technology industry, with the artificial intelligence chipmaker reportedly losing more than $600 billion in market value this week. Nvidia shares fell approximately 10 percent in early trading on Thursday, while the technology-heavy Nasdaq also recorded a decline. The company, valued at around $4.2 trillion, is one of the world’s most influential players in the artificial intelligence industry, supplying advanced processors used to power AI systems worldwide.

According to reports, Nvidia’s board held an emergency meeting on Wednesday night to discuss Huang’s future after concerns emerged over his alleged relationship with Alice Huang, a former executive at Singapore-based Megaspeed, one of Nvidia’s major business partners in Southeast Asia. The company is reportedly facing scrutiny from the FBI, the US Congress and its own internal investigators over possible national security implications. Megaspeed has also reportedly faced investigations concerning whether it helped Chinese companies gain access to a stockpile of advanced Nvidia chips worth approximately $4.8 billion. The controversy has raised concerns in Washington because the United States maintains restrictions on advanced semiconductor exports to China over fears that the technology could be used by Chinese military and intelligence organisations.

Following the reported resignation, Nvidia appointed its chief financial officer and executive vice president Colette Kress as interim CEO, while Harvey C Jones was named the company’s first board chair. The controversy also comes after reports of another alleged relationship involving an Nvidia vice president who reportedly worked under Huang. Despite the leadership turmoil and sharp stock decline, analysts believe Nvidia remains fundamentally strong because of its dominant position in the AI semiconductor market. Aleksandar Tomic of Boston College described the departure as a significant but manageable disruption, suggesting the company has the financial strength, products and market position to navigate the leadership transition. However, the developments could have wider implications for investor confidence, US-China technology relations and the global artificial intelligence industry.