Nvidia's new interim chief executive, Colette Kress, has acknowledged to employees that the company has been through 'an extraordinarily difficult period' following the sudden exit of co-founder Jensen Huang. She said leadership would share more about the company's future in the coming days and has called a company meeting for November 18 at 9 am Pacific Time (10:30 pm IST).
What the emails say
Two emails went to employees. The first came from Harvey Jones, who is now the first-ever Chair of Nvidia's board. He wrote that Huang had resigned as CEO and as a board member, and that the board had asked Chief Financial Officer Colette Kress to serve as interim CEO. The board is searching for a permanent successor and will consider both internal and external candidates.
Jones described Kress as a key architect of Nvidia's growth and capital strategy over more than 13 years as CFO, and said the board has full confidence in her. He also paid tribute to Huang, saying Nvidia pioneered accelerated computing, defined the modern GPU and built the platform that powered artificial intelligence.
Kress's message to staff
In her reply, Kress struck a reassuring tone. She said she believes deeply in the company's future and thanked employees for their resilience, professionalism and dedication. She called them Nvidia's "greatest strength". She said the board, the executive staff and she recognise how hard the period has been. She also said Nvidia plays a vital role in building the technology behind the AI revolution and has important work ahead.
The transition
According to a regulatory filing, Nvidia's board accepted Huang's resignation on Wednesday, November 11. Kress remains CFO while serving as interim CEO. Jones, a managing partner at Square Wave Ventures and former CEO of Synopsys, has been on Nvidia's board since 1993.
The backdrop
The leadership change follows days of turmoil. Huang resigned just days after admitting to a romantic affair with an alleged Chinese spy, which it said sparked a US national security crisis. The same outlet reported that Nvidia's stock had lost more than $300 billion in market value since last Friday, and that shares were down more than 11percent in premarket trading on Thursday. Neither email refers to the allegations.
What happens next?
The November 18 meeting will be the first formal opportunity for employees to hear from the new leadership. The board has not given a timeline for naming a permanent CEO.
You can find the full emails below:
Subject: Statement from NVIDIA Board Chair
Dear NVIDIA Employees,
I am writing to share an important update. Jensen has resigned as CEO and Board Member, and the Board has asked our Chief Financial Officer Colette Kress to serve as interim CEO while it conducts a search for a permanent successor looking at both internal and external candidates. I will serve as the first-ever Chair of the Board.
As CFO for over 13 years, Colette has been a key architect of NVIDIA's growth and capital strategy. She possesses a deep understanding of this business and the markets in which we operate. The Board has full confidence in Colette to deliver on our commitments to shareholders, customers, partners, and to each of you.
Jensen's contributions to NVIDIA are profound. NVIDIA is one of the most consequential technology companies in the world. We pioneered accelerated computing, defined the modern GPU, and built the platform that powered artificial intelligence.
The Board takes seriously our duty as stewards of this great company.
The strength of this company resides in our employees, leadership team, technical strength and partner ecosystem. I am confident that under Colette's leadership, with the full support of the Board, we will continue to grow our business, and lead the industry forward. Thank you for your focus, your professionalism, and your commitment to NVIDIA.
Harvey Jones
Subject: RE: Statement from NVIDIA Board Chair
Dear NVIDIANs,
I believe deeply in this company and in its future. More than anything, I believe in each of you, in our customers and partners and in the vital role we play every day in the global economy.
The Board, Estaff and I recognize that this has been an extraordinarily difficult period and I want you to know how grateful we are for your resilience, professionalism and continued dedication. Thank you.
This company has achieved so much because of the work that all of you bring to it every single day. You are our greatest strength. You will hear more from leadership in the coming days about our future together, and we will host a company meeting on November 18 at 9am PT.
We play a vital role in building the technology that is powering the AI revolution, and we have important work ahead of us. So let's move forward together, with the same determination and commitment that have always defined this company.
Thank you for all you do,
Colette
