NVIDIA CFO Colette Kress, 59, was appointed interim CEO after founder Jensen Huang resigned due to scandal. Sources revealed Kress previously challenged Huang's high-risk AI investment strategies involving companies like OpenAI and Lambda, with some Wall Street observers concerned such investments create circular capital flows within the AI industry. Analysts question whether Kress, coming from a financial background, can sustain NVIDIA's technical innovation trajectory.
Kress Challenged Huang on OpenAI and Lambda Investment Strategies
Sources told Reuters on November 13 that Kress and her team clashed with Huang and NVIDIA's sales division over high-risk financing deals involving OpenAI and AI infrastructure firm Lambda. NVIDIA's proposed $250 billion plan to support an OpenAI data center in Ohio was ultimately reduced to $120 billion, though the report did not specify whether Kress drove this decision. One venture capital investor noted Huang's aggressive customer financing approach may be difficult for others to replicate.
In August, Huang publicly rejected concerns about circular financing, stating his only regret was not investing more capital earlier. Kress also emphasized at the time that the investments were expected to deliver strong returns with limited risk, indicating internal disagreements did not surface in public statements.
Kress joined NVIDIA in 2013 after holding positions at Microsoft, Cisco, and Texas Instruments. People familiar with her describe her as pragmatic and composed, noting she recently called clients and suppliers to provide reassurance during the management transition.
Sources expect Kress may adopt communication methods common among other tech companies, actively building relationships rather than continuing Huang's approach of directly confronting government officials on chip export control issues.
NVIDIA Stocks Fell 4.34% on November 12
NVIDIA stocks opened November 12 down over 14% but recovered as retail investors bought the dip, closing down 4.34% at $166.19, the lowest close since March 30. Intraday trading reached a low of $148.8, the lowest since June 24, 2025.
Board Considers Ian Buck, Lisa Su, Rene Haas as CEO Candidates
The board continues searching for a permanent CEO. NVIDIA executive Ian Buck, AMD CEO Lisa Su, and Arm CEO Rene Haas have been named as potential candidates.
Moor Insights & Strategy analyst Anshel Sag stated that appointing Kress as interim CEO helps stabilize the market, but she may not be the long-term technical leader NVIDIA needs to sustain growth.
FAQ
Why did Jensen Huang resign as NVIDIA CEO?
Jensen Huang resigned due to scandal, as reported by Reuters on November 13.
What disagreements did Colette Kress have with Jensen Huang?
Sources revealed Kress and her team clashed with Huang over high-risk AI financing deals involving OpenAI and Lambda, with concerns about circular capital flows in the AI industry.
Who are the potential candidates to replace Jensen Huang permanently?
The board is considering NVIDIA executive Ian Buck, AMD CEO Lisa Su, and Arm CEO Rene Haas as potential permanent CEO candidates.
