Nvidia CEO Jensen Huang resigns amid alleged affair with suspected spy

This is an ABC News special report. Hi, I'm Diane Macedo. We're coming on the air with breaking news. NVIDIA has just announced its CEO has resigned amid a Chinese spy scandal. The New York Times reported Jensen Huang was involved with an alleged Chinese spy, and Huang then admitted to having an extramarital affair. Another report then alleged she had another affair with a subordinate. Now his exit could have major implications for the AI boom and the larger economy. Elizabeth Shelby is here for more on all of that. Hi, Elizabeth. So what's the latest on these allegations and the fallout? A stunning announcement here, Diane, from one of the most powerful CEOs in the world. NVIDIA announcing that Jensen Huang, who has been the co-founder of this company since 1993, leading it to become the central company at the heart of the AI revolution, is resigning. He will be replaced by an interim CEO and executive at the company named Colette Kress. This comes in the wake, as you said, of NVIDIA's CEO, Jensen Huang, admitting that he had an affair with a woman who is alleged to be a Chinese spy and in the wake of another report from the New York Times that he also had an affair with someone at the company who reported to him. This is an announcement that Wall Street had been on edge over when you think about the person who will be leading this company now. The stock, Diane, in early extended hours trading just ahead of the market open here is notably lower, about 10% lower. When you're talking about a company like Nvidia, that is hundreds of billions of dollars in value. Signifies, Diane, just how important Jensen Huang has been not just to Nvidia, but to the overall AI economy and the stock market, a major announcement here that he is now resigning. So what does this mean now for Nvidia and its critical role in the tech economy? In some ways, this will give investors some sort of sense of what the path forward is here. As these allegations had been coming out, it really embroiled this company that is seen as really the main company that can provide the computer chips that keep AI running. This is really the company that is at the core of how you make AI work. It makes those computer processing chips. Without that, all of the kind of infrastructure for AI can't. Can't keep going. And so the idea, at least on Wall Street had been, what will the path for this company be? And they needed to know that there was some sort of succession plan and that had not been clear really until now. We understand reportedly the board had been meeting to try to figure out this plan. Now it's clear there will be an interim CEO and Jensen Huang is out. All right, Elizabeth Shelby, thank you. And thank you for watching. We'll have a full wrap up tonight on World News Tonight with David Muir and much more throughout the day on ABC News Live. Have a great rest of the day.