Jensen Huang resigned immediately as Nvidia’s president, CEO and board member after a board investigation into an extramarital affair with a woman whom U.S. intelligence officials believe to be a Chinese spy. CFO Colette Kress is now interim CEO, and Harvey Jones has been named chair of the board. The weakening of Nvidia’s financial backing poses the greatest risk to CoreWeave and Nebius, which depend heavily on its chips and support to borrow: CoreWeave carried $35 billion in debt at the end of June, while Nvidia joined a financing platform that could mobilize $500 billion and may backstop up to $125 billion. CoreWeave and Nebius shares fell 9% and 16%, respectively, on Thursday, after Nvidia had already lost about $450 billion in market value following disclosures about the affair. Investor Joe Kaiser believes Nvidia will retain its lead in model training for another two or three years because of CUDA, but Huang’s departure could benefit AMD, Broadcom, Google, Amazon and specialized chipmakers competing in inference.
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