Nvidia's new interim CEO faces $80 billion in AI investments and legal probes

Colette Kress has been named interim chief executive of Nvidia, stepping in after the company’s founder and 33-year leader, Jensen Huang, abruptly departed the role. The change in leadership arrives as the chipmaker navigates a week of intense scrutiny involving financial strategies, personal scandals, and potential government investigations.

Huang played a central role in financing the current artificial intelligence boom. Gary Marcus, a cognitive scientist and AI researcher, described the company's approach to Morning Edition as acting like a bank that backstops the entire sector. He cited a practice of circular financing, where Nvidia invests in AI startups that then use those funds to purchase Nvidia chips. Companies including OpenAI, Anthropic, and CoreWeave have relied on this funding structure, even as many AI businesses struggle to reach profitability.

Marcus characterized Huang as a swashbuckler willing to make bets of arbitrary size. Kress, by contrast, has a background in finance rather than engineering and served as the company’s longtime finance chief. Her professional history suggests a more cautious approach to large financial commitments, which may alter how Nvidia supports the wider AI industry.

Kress must also address potential federal and congressional investigations into Nvidia’s dealings with China. Marcus noted that lawmakers are seeking answers about information shared between Huang and Alice Huang. He also questioned why Commerce Secretary Howard Lutnick did not intervene earlier in the process.

The transition leaves the AI industry questioning its financial stability. With Huang gone, the sector loses the figure who helped bankroll its rapid expansion. Kress now holds the authority to determine whether Nvidia continues to fund its competitors or pulls back its financial support.