00:00We are shifting focus to another big story now.
00:03He was the face of the AI revolution,
00:06the man who turned NVIDIA into a global powerhouse,
00:11made computer chips one of the world's most valuable commodities
00:17and became the most influential executive in the AI industry.
00:22But after 33 years at the helm,
00:24Jensen Huang's extraordinary run has come to an abrupt end.
00:30Three reported personal affairs,
00:32a controversy involving alleged diversion of American chips to China
00:37and mounting national security questions,
00:39have culminated in a dramatic exit.
00:42And this is no ordinary corporate shake-up.
00:46Huang's departure has rattled investors,
00:50sent NVIDIA shares tumbling,
00:52and raised questions about the future of an AI boom
00:57built around his company's technology and vision.
01:00So what happens to the artificial intelligence revolution
01:04without the man who powered it?
01:06I'm going to ask all these questions to the guests who will be joining me shortly.
01:11But first up, here's a report.
01:17He built NVIDIA into the powerhouse of the artificial intelligence revolution,
01:22turned computer chips into one of the world's most valuable commodities,
01:26and became the most influential executive in the global AI industry.
01:33But after 33 years at the top,
01:36Jensen Huang is out,
01:38ousted following revelations about multiple personal relationships,
01:42one of which has now triggered serious questions about China,
01:45American technology and national security.
01:48And the fallout is no longer confined to NVIDIA's boardroom.
01:55NVIDIA shares plunged as much as 14% after the news of Jensen's ouster
02:00before recovering some ground.
02:02Closing Thursday down 4.3%,
02:04more than $500 billion wiped off its market value since the scandal broke.
02:10The selling spread to AI-related companies,
02:13including Micron, Marvel and Coreweave.
02:16As investors confronted a question that had long been overlooked,
02:20can the world's most important AI chipmaker thrive without the man who built it?
02:25Chief Financial Officer Colette Kress has been named interim CEO,
02:30but her immediate challenge is much bigger than steadying NVIDIA's share price.
02:35She must reassure investors,
02:37protect billions of dollars in AI investment in companies like OpenAI,
02:41XAI, Antropic, Intel, SSI,
02:45and convince customers that NVIDIA's technological dominance
02:49does not depend on one individual.
02:54At the heart of the controversy is Huang's reported relationship with Alice Huang,
02:59a former executive at Singapore-based Megaspeed,
03:02a major buyer of NVIDIA chips that has faced scrutiny
03:06over possible diversion of restricted American technology to China.
03:10The Justice Department is examining potential export control violations,
03:15while questions have also emerged about whether Alice Huang had links to Chinese intelligence.
03:21But American authorities have not yet established that she was a spy,
03:26and both NVIDIA and Megaspeed have denied wrongdoing.
03:29So you assume that DOJ learns that she is, in fact, a spy.
03:34I'm not—nobody's said that.
03:36I certainly haven't said that.
03:37And I don't—all I said a minute ago, and all that I think I will say,
03:42is that, of course, DOJ is an investigator looking at it.
03:45So there's no conclusions reached by the Department of Justice or by me or by Director Patel
03:50around who she is or is not.
03:52I don't have concerns with the Commerce Department.
03:54I don't.
03:55We have a good relationship with the Commerce Department.
03:57I've read some of the stories, which, you know, are sourced or not sourced.
04:02And so I don't have any—but no, I don't have—the answer to your question is no,
04:05I don't have any concerns.
04:07The distinction is crucial because while the espionage allegations remain unproven,
04:12the investigation into possible chip diversion could have consequences
04:16for the entire global AI supply chain.
04:19This is one GPU.
04:21The political fallout is gathering pace in Washington, where Democrats are demanding
04:26answers about whether sensitive American technology may have reached China
04:31and whether national security was compromised.
04:34It was the right thing to do.
04:36Now we have to get to the bottom of whether America's national security has been compromised.
04:41We need a classified briefing made available to members of Congress as it relates to the NVIDIA
04:48situation and to the extent that our national security has been compromised.
04:53The American people deserve answers, and we're going to work to make sure that happens.
05:00With congressional scrutiny expected to intensify, NVIDIA now faces the prospect of tougher export
05:06restrictions, more aggressive oversight, and potential greater limitations on its access
05:12to the Chinese market.
05:13And that could also deliver a major blow to Chinese AI developers, many of whom still depend
05:19on American chips to power their most advanced systems.
05:24Meanwhile, US President Donald Trump added his own unexpected twist to NVIDIA's succession drama,
05:30publicly suggesting that former Apple chief Tim Cook take over the chip maker.
05:35Calling both men legends, Trump's intervention has thrown another spotlight on a company already
05:41under intense political and investor scrutiny.
05:45For Huangli's NVIDIA, the immediate priority is stability.
05:49But the long-term challenge is whether it can preserve the business empire, its dynamic founder
05:55and former CEO created, including its closely interconnected investments, customers and partnerships across
06:02the AI industry.
06:04Rivals AMD, Intel and Broadcom could see an opening, while investors will be watching whether customers
06:12reconsider their dependence on NVIDIA and whether Washington's next moves disrupt the global
06:18chip trade.
06:21Bureau Report, Business Today Television.
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