developing· Tech· Updated 23:34

Nvidia CEO Jensen Huang Resigns, Casting Doubt on Israel Expansion Plans

Nvidia founder and CEO Jensen Huang resigned on Thursday, effective immediately, amid a scandal involving extramarital affairs and suspicions of Chinese espionage. The company's Chief Financial Officer, Colette Kress, has been appointed interim CEO while the board searches for a permanent successor.

4 newsrooms · 2 languages · since 16:25

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What happened

01Nvidia founder and CEO Jensen Huang resigned on Thursday amid a scandal involving extramarital affairs and suspected Chinese espionage.
02Chief Financial Officer Colette Kress has been appointed interim CEO while Nvidia searches for a permanent successor.
03Nvidia's stock fell 7.5% following the announcement, dragging down Wall Street indices and other AI-related tech stocks.
04The leadership change casts doubt on Nvidia's planned multibillion-shekel R&D campus in Kiryat Tivon, which was set to create 10,000 jobs.
05Nvidia employs over 5,000 people in Israel, and its Israeli-based communications division generates approximately $40 billion annually.
06Apple's Johny Srouji and Nvidia's Michael Kagan, both Israeli executives, are reportedly being considered as potential candidates for the permanent CEO position.

The resignation caused Wall Street indices to open lower, with Nvidia's stock dropping 7.5% and other AI-related companies experiencing significant declines. Meanwhile, Nvidia's competitors AMD and Broadcom saw gains as investors anticipated new business opportunities.

Huang's departure has raised concerns about the future of Nvidia's extensive operations in Israel, where it employs over 5,000 people across seven research and development centers. The crisis casts doubt on planned expansions, including a multibillion-shekel R&D campus in Kiryat Tivon that was expected to create 10,000 jobs starting in 2027.

Kress, the interim CEO, has previously emphasized Israel's importance to Nvidia, noting that the company's Israeli-based communications division, built on the acquisition of Mellanox, generates approximately $40 billion annually. Two Israeli executives, Apple's Johny Srouji and Nvidia's Michael Kagan, are reportedly among the potential candidates being considered for the permanent CEO role.

Summarized by baba from the reports of 4 newsrooms. Updated 23:47

Latest report: The Times of Israel. Read The Times of Israel’s original