Sources familiar with the matter: Nvidia's interim CEO may adopt a more cautious business strategy than Jensen Huang.
23 minutes ago
According to a report by The Information, Colette Kress, interim CEO and CFO of NVIDIA (NVDA.O), has repeatedly raised objections to the high-risk transactions pushed by Jensen Huang. People familiar with the matter said Kress may adopt a more prudent business strategy than Huang. She previously opposed NVIDIA’s plan to provide up to $250 billion in credit support to OpenAI; the deal was eventually split, and NVIDIA has now only committed around $100 billion in credit support. With delays to data center projects and canceled cloud computing deals, Kress had already begun to diversify NVIDIA’s financial risk exposure to a small number of clients. NVIDIA had previously provided over $100 billion in financial support, including investments and credit guarantees, to its clients and supply chain partners. After Jensen Huang’s departure, some investors have expressed concerns that the company may tighten its financing support. One cloud service provider has even considered switching to chips from Google or AMD. In addition, Kress also faces challenges including scattered client procurement, tightened U.S. export controls, and internal power adjustments at the company. She had previously clashed with Huang, as well as his daughter and son-in-law, over company matters.
Jensen Huang was exposed to having an intimate relationship with NVIDIA's second-ranked employee.
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Jensen Huang forced to forfeit $108 million in equity awards
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