00:00The NVIDIA scandal that gets bigger by the day, the man who turned NVIDIA into a global AI powerhouse,
00:08the leading AI chip company across the world, Jensen Wang, remember, quit the firm yesterday after 33 years at the
00:16helm.
00:16The resignation comes in the wake of not just one, two, but now three alleged affairs
00:21and allegations of now diversion of American chips to China.
00:26The scandal has hit NVIDIA shares, but more importantly, it is said to have an impact on the global AI
00:33revolution of our times.
00:35What lies next? We'll have that discussion in a moment. But first, take a look at this report.
00:44Elvis has left the building, the building where he built the world's most powerful AI chip empire,
00:50but found himself becoming the face of a scandal or three.
00:57NVIDIA co-founder and CEO Jensen Wang has stepped down after a series of controversies put his leadership under the
01:04scanner.
01:05The fall of one of the most powerful men in tech began with his relationship with Alice Wang
01:10that raised questions far beyond Wang's marriage.
01:14U.S. authorities suspected Alice of having links to Chinese intelligence.
01:18She was the CEO of a Singapore-based data center company, Megaspeed, that had become a major NVIDIA customer.
01:25But American authorities have not yet established that she was a spy, and both NVIDIA and Megaspeed have denied wrongdoing.
01:32First question, assume something that I have never said and that I don't know to be true.
01:36So you assume that DOJ learns that she is in fact a spy.
01:42Nobody's said that, I certainly haven't said that, and I don't, all I said a minute ago and all that
01:47I think I will say is that of course DOJ is an investigator looking at it.
01:51So there's no conclusions reached by the Department of Justice or by me or by Director Patel around who she
01:57is or is not.
02:00NVIDIA's board initially expressed confidence in Wang, but then announced an independent investigation.
02:06Before the company could deal with this controversy, another emerged, this time involving Kimberley Powell, NVIDIA's vice president of healthcare.
02:15Huang and Powell were allegedly seen being affectionate at a hotel in California.
02:20The back-to-back scandals mounted pressure enough to end a 33-year leadership run.
02:24But not long after, his third extramarital affair surfaced.
02:29According to reports, Huang had an intimate relationship with another NVIDIA employee too.
02:33And the fallout is anything but contained.
02:37NVIDIA shares plunged as much as 14% after the news of Jensen's ouster before recovering some ground.
02:44Over $500 billion have been wiped off its market value since the scandal broke.
02:49The selling spread to AI-related companies including Micron, Marvel and Corvive as investors confronted a question that had long
02:57been overlooked.
02:58Can the world's most important AI chipmaker thrive without the man who built it?
03:04Billionaire investor Leo Koguan has vowed not to buy more NVIDIA stock and backed Huang, saying he hopes to invest
03:10in his future venture if he launches another AI company.
03:14Rivals AMD, Intel and Broadcom could now see an opening.
03:18NVIDIA CFO Colette Kress has taken over as interim CEO of the $4 trillion company.
03:24The board has begun the search for a permanent successor.
03:26But for a Huang-less NVIDIA, the challenge is to preserve Huang's aggressive growth strategy while reassuring investors that NVIDIA
03:34is bigger than its founder.
03:36Bureau Report, India Today.
