Nvidia shares fall 13% as Jensen Huang steps down over affair

At a glance

Nvidia CEO Jensen Huang has resigned after an affair, and the company's shares dropped 13% in early trading. The departure is drawing attention to Nvidia's central role in AI and its complicated deal structures.

Key points

1. 1

   Nvidia designs and sells the high-end chips (GPUs, graphics processing units) that AI models need to be trained and run.

2. 2

   Huang met many world leaders and pushed their plans for national AI, then signed chip supply deals with them.

3. 3

   Nvidia invested in neocloud companies that rent out its chips and in AI startups, so its money circulates among many firms.

4. 4

   Taiwan's TSMC manufactures the chips, so it is seen as just as important as Nvidia.

Why it matters

Many AI services depend on Nvidia chips, so trouble at the company could affect the whole AI industry and the plans of several countries.

Also reported by

• The DecoderJensen Huang resigns as Nvidia CEO after espionage scandal wipes out $1.4 trillion in market value
• The Robot ReportNVIDIA replaces CEO amid China AI and robotics concerns