What smart people in business and tech are saying about Jensen Huang's ouster
Nvidia's board announced Thursday that Jensen Huang had resigned as CEO. Tomohiro Ohsumi/Getty Images Nvidia founder Jensen Huang is out. After another report about an affair, Nvidia's board announced Thursday that Huang had resigned. This is what smart people in business and tech are saying about Huang's departure. Nvidia is without its founder for the first time in more than 30 years. On Thursday, Nvidia's board announced CEO Jensen Huang's abrupt resignation , ending the tenure of a leader who had overseen the chipmaker's rise to become one of the world's most valuable companies. Huang's ouster came after days of reports about his personal life. First, The New York Times reported that the Nvidia leader had a close relationship with someone US officials suspect to be a Chinese intelligence asset. On Sunday, Huang acknowledged having an affair, and Nvidia's board launched an investigation into whether Huang had been targeted by a foreign intelligence operation. The Times had reported that the Nvidia founder had grown close to Alice Huang , who US officials believed had been recruited to gather information for the Chinese government. Then on Wednesday, the Times reported that Huang had another affair with Kimberly Powell , an Nvidia executive who reported to him. By Thursday morning, one of the world's richest men and a face of the AI boom was out of a job. Clem Delangue, CEO of Hugging Face Hugging Face CEO Clement Delangue Bloomberg/Getty Images Hugging Face CEO Clem Delangue said, "This whole thing sucks." "I wish none of it had happened. It's a really sad day!" Delangue wrote on social media. Delangue, whose company Nvidia agreed to acquire for roughly $12.9 billion, said that he'll continue to fight for open-source AI. "I want to make one thing clear: we'll keep fighting for open-source AI, harder than ever," he wrote. "This is too important to slow down now. Let's go!" Dan Ives, partner at Yorkville Ives & Co. Dan Ives. Astrida Valigorsky/Getty Images Tech megabull Dan Ives said that Nvidia's board "had no choice." "Time to look forward for Nvidia without Jensen," Ives wrote on X. "Dark chapter for Jensen and Nvidia." Ives also pointed to his earlier statement about what he expects the stock to do without Huang at the helm, which was published before the resignation was announced. "We see the stock valuation at $225 without Jensen ($300 with Jensen as CEO)." President Donald Trump Chip Somodevilla/Getty Images President Donald Trump suggested a familiar name to take Huang's place. "NOW THAT Nvidia CEO JENSEN HUANG, who has done a fantastic job, has resigned, there is only one man to take his place - TIM COOK of Apple. A Legend replaces a Legend!" Trump wrote in a post on Truth Social. Cook stepped down as Apple CEO in September. Lloyd Blankfein, former CEO of Goldman Sachs Bloomberg/Getty Images Former Goldman Sachs CEO Lloyd Blankfein waxed poetic about the moment. "Sad about Jensen. Shakespearean," Blankfein wrote on X. "But as de Gaulle said, 'The graveyards are filled with indispensable men.'" (While the quote is often attributed to the legendary French statesman Charles de Gaulle, at least one researcher has raised questions about its origins .) Sen. Elizabeth Warren Sen. Elizabeth Warren, a Democrat from Massachusetts Tom Williams/CQ-Roll Call, Inc via Getty Images Sen. Elizabeth Warren of Massachusetts, who is likely to chair the powerful Senate Banking Committee, said Huang's resignation won't end Congress' desire for answers. "Jensen Huang's decision to resign from NVIDIA does not absolve him, other executives, or the company as a whole of responsibility for putting our national security at risk or for any potential violations of our laws," Warren wrote on X. Shaun Maguire, a partner at Sequoia Capital Shaun Maguire called the decision "bad for America" but doubted Huang had bad intentions. Al Drago/Bloomberg via Getty Images Sequoia Capital partner Shaun Maguire said Huang will "leave a huge void, with the loss of a: technical, aggressive, founder-CEO." "The American AI community needs to work double-time in an attempt to fill this void," Maguire wrote in a lengthy post on X. Maguire said, "Infidelity is obviously bad," but Huang's "contributions to American innovation and AI leadership cannot be overstated." Jim Cramer, host of CNBC's Mad Money Jim Cramer said Apple's new filing was "gloves off." John Nacion/Variety via Getty Images CNBC anchor Jim Cramer, who has interviewed Huang on several occasions, said Nvidia had no choice. "It had to happen. There's way too much evidence," Cramer said on CNBC after the news became official. Cramer praised Kress who the board named as Nvidia's interim leader. "I like Colette very much," he said. "I think she's going to be terrific in trying to figure out where the pieces are. Martin Casado, A16z general partner TK. Illustration by Thomas Fuller/SOPA Images/LightRocket via Getty Images Investor Martin Casado called Thursday a "Dark, dark day." "Horrible decision for the U.S. and the western world," he wrote on X. Ross Gerber, CEO of Gerber Kawasaki Wealth & Investment Management Ross Gerber has been bearish on Tesla. Emma McIntyre/Getty Images Ross Gerber said Huang's departure is "certainly a low moment for us long term Nvidia investors." "Jensen has resigned which is sadly the correct action in this case. Nvidia needs to be bigger than one man," Gerber wrote on X. "AI will go on and Nvidia will continue to be the core player." Gerber compared the moment to when Steve Jobs stepped away from Apple. "I was around when Jobs died, and many thought it was the end of Apple," Gerber wrote. "It was only the beginning." Gene Munster, managing partner at Deepwater Asset Management Peter Foley/Bloomberg via Getty Images Gene Munster, a tech analyst and managing partner at Deepwater Asset Management, said in an X post that Nvidia will rebound. "The unknown is now known," Munster wrote. "This morning $NVDA will gap down ($150 floor) on the Jensen news, then rallies as the market focuses on what actually matters." Munster said Nvidia's earnings next Tuesday should confirm his view. "AI demand is still accelerating," he wrote. "Nvidia GPUs remain the clear winners." Sarah Guo, founder of Conviction Big Event Media/Getty Images for HumanX Conference Investor Sarah Guo said that Huang's ouster is "a big loss." Before the news was announced, Guo described the Nvidia founder as "one of the most extraordinary entrepreneurs of all time." "He's bent the arc of technological progress, and the growth engine of the American economy rests on the shoulders of the company he built," Guo wrote on Thursday. Stephen Witt, author of a Huang biography Journalist Stephen Witt, who wrote "The Thinking Machine: Jensen Huang, Nvidia, and the World's Most Coveted Microchip," said Huang "was Nvidia." "It's like the Bulls without Jordan," Witt said on CNBC on Thursday, alluding to NBA legend Michael Jordan's retirement after winning six titles in Chicago. "I don't know how they are going to replace this guy." Witt said Huang's range, from "world-class computer scientist" to deal-closer, will be difficult to replicate. "Jensen could take a diagram of Nvidia equipment, an exploded diagram, and draw it by hand from memory," Witt said. Anthony Pompliano, crypto investor and entrepreneur Slaven Vlasic/Getty Images for Anthony Pompliano Anthony Pompliano, a crypto investor and entrepreneur, wrote on X: "There is a good chance today is the bottom of the AI sell-off." Pompliano added, "No greater capitulation than the resignation of the CEO of the largest company in the world." Elad Gil, founder and CEO of Gil Capital, The prominent VC said the Nvidia drama should prompt founders to reassess their boards. "Good reminder for all founders to revisit who is on their board," Gil wrote on X, pointing to the OpenAI coup and Uber as precedents. He advised founders to reset their boards "during good times" to avoid abrupt action in bad ones. Travis Kalanick, Uber's cofounder who resigned as CEO in 2017, replied: "I concur." Naval Ravikant, AngelList's cofounder and chairman Naval Ravikant said that you cannot simply replace the founder. Steve Jennings/Getty Images for TechCrunch The angel investor and entrepreneur argued that founders are not easily replaceable. "You'd think we'd have learned from Steve Jobs and Travis Kalanick that one does not just simply replace the founder…" Ravikant wrote, invoking two high-profile cases where boards ousted founders. Elon Musk replied, "True words." Lex Fridman, host of the Lex Fridman Podcast Fridman called Nvidia's decision to let Huang go "a huge mistake" and said he stood with him. Fridman said the move was "Apple firing Steve Jobs all over again, but much bigger," given AI's importance. He said he had stayed quiet out of respect for Huang's family and team and because he personally hates infidelity. Still, Fridman wrote that Huang "is human, and makes mistakes like all of us do." He said his own interactions with Huang had shown kindness and humility, and he pushed back against the "mass hysteria" around spy allegations. Tobi Lütke, Shopify's cofounder and CEO Shopify CEO says companies often undervalue founders and put them in a corner. Kevin Dietsch/Getty Images Lütke called Nvidia's CEO transition a "generational blunder." Lütke said that was his view "at least based on the information that's available." Responding to a comment that Nvidia lacked a succession plan after 33 years under Huang, Lütke said there could never be a "true succession" for a founder like Huang, and warned Nvidia could become an imitation of the company he built. "There is no replacing a founder like Jensen," he said. Read the original article on Business Insider