Nvidia’s supremacy in artificial intelligence, a risk for investors
By the AFREEQUE newsroom, based on Moneyweb, Financial Afrik and BBC
Nvidia’s domination of artificial intelligence chips makes it indispensable, but also a source of vulnerability for investors. Its chief executive, Jensen Huang, is leaving the group after a scandal involving an alleged extramarital affair and suspected espionage, according to the BBC.
Jensen Huang is leaving the chief executive role at Nvidia, according to a statement from the company’s board of directors. He had found himself at the centre of controversy after accusations of an extramarital affair with Alice Huang, who ran a data centre company based in Singapore. She is not related to the executive, despite sharing the same surname.
This woman is suspected of being a Chinese spy. The Sunday before, the executive admitted to deceiving his wife and apologised to her and their children for the harm caused. The New York Times later revealed a second relationship, with an employee of the company.
Beijing has warned Washington that these espionage accusations must not serve as a pretext for again restricting technology sales to China, and the Chinese government denies the allegations. Nvidia is investigating the relationship the executive acknowledged, and the FBI has launched its own investigation.
Colette Kress is acting as interim chief executive. Unlike Jensen Huang, she is not an engineer, and her management style is expected to be very different from that of an extremely demanding executive. Zoe Kleinman, technology editor, notes that she is a familiar figure at the company, where she has worked for 13 years, which should reassure employees and shareholders. She will, however, have to convince investors that the pace of innovation will not slow.
