From Fortune · Sasha Rogelberg · · 2m
Nvidia CEO steps down as chip smuggling probe deepens
Jensen Huang resigned after an affair with a suspected Chinese operative, as questions mount over Nvidia's sudden change in how it reported Singapore revenue tied to a major client under investigation.
In brief
Jensen Huang resigned after an affair with a suspected Chinese operative, as questions mount over Nvidia's sudden change in how it reported Singapore revenue tied to a major client under investigation. Nvidia cofounder Jensen Huang stepped down as CEO following revelations of an affair with a suspected Chinese…
Nvidia CEO resigns over affair
Nvidia cofounder Jensen Huang stepped down as CEO on Thursday following revelations of an affair with Alice Huang, a former Megaspeed executive suspected of being a Chinese operative.
Megaspeed under investigation
Megaspeed, one of Nvidia's largest Asian buyers, is suspected of diverting advanced chips to China in violation of U.S.export laws.
Singapore authorities clear Alice Huang
Singapore authorities investigated Megaspeed and Alice Huang beginning in February twenty twenty-five and found insufficient evidence of espionage. However, Singapore barred Alice Huang from re-entering the country.
Nvidia blocks Megaspeed, drops Singapore reporting
In June twenty twenty-five, Nvidia added Megaspeed to its internal block list, prohibiting sales to the company.Around the same time, Nvidia stopped reporting revenue from Singapore, one of five geographic areas it had previously listed.
Singapore revenue vanishes from filings
In the quarter ending July twenty twenty-five, Nvidia reported ten point two billion dollars in Singapore revenue, twenty-two percent of total revenue and an eighty-one percent year-over-year increase.
Nvidia changes its accounting method
Nvidia's October twenty twenty-five earnings report cited a new accounting method, separating markets by customer headquarters location instead of customer billing location, despite previously stating customers use Singapore to centralize invoicing.
“customers use Singapore to centralize invoicing while our products are almost always shipped elsewhere”
Kress takes over as investigators scrutinize timing
Nvidia CFO Colette Kress will lead the company in the interim. Accounting professor Shiva Rajgopal told Fortune the timing of the reporting change is curious and will likely become part of Department of Justice and…
“The timing is curious”
The essence
Nvidia cofounder Jensen Huang stepped down as CEO following revelations of an affair with a suspected Chinese operative, as investigators examine the company's financial reporting changes linked to a client accused of diverting chips to China.
