Jensen Huang often belittled the woman now leading NVIDIA
What's the story
Before his sudden exit from NVIDIA, CEO Jensen Huang and CFO Colette Kress had a rocky relationship. The Wall Street Journal reported that Huang often belittled Kress in internal discussions. He even described her as "a deer in the headlights" during a meeting about the company's financial commitments. Now, Kress has taken over as interim CEO after Huang's departure amid a series of personal and corporate controversies that put his leadership under scrutiny.
Financial disputes
Tensions over NVIDIA's spending
The tensions between Huang and Kress revolved around NVIDIA's spending, especially its investments and financial backing for AI start-ups and infrastructure firms.
Under Huang, NVIDIA had ramped up its financial commitments to AI companies and infrastructure partners through investments, hardware allocations, and other funding arrangements.
While the strategy bolstered NVIDIA's position in the AI ecosystem, it also raised eyebrows among investors.
Financing concerns
Concerns over 'circular financing'
Some Wall Street analysts and short-sellers expressed concerns over what is called "circular financing." This involves a company investing in businesses that use that money to buy its products or services.
Kress reportedly preferred a more cautious approach and wanted greater clarity on these deals, especially when explaining them to investors.
In August, she publicly acknowledged that some investors may call NVIDIA's financial support for AI businesses circular financing.
Leadership transition
Huang resisted attempts to limit sales strategies
Huang was reportedly frustrated with the criticism and internal resistance to some of his business decisions.
He resisted attempts to limit sales strategies, telling colleagues: "You are not establishing the value of my products."
Now, Kress has the tough job of leading one of the world's most valuable tech companies at a particularly turbulent time.
She joined NVIDIA in 2013 after senior finance roles at Cisco and Microsoft.
Future hurdles
Kress takes charge at a challenging juncture
Kress's appointment is significant as she will have to navigate some of the very issues she disagreed with Huang over.
These include NVIDIA's investments in AI companies, financial commitments to infrastructure partners, and investor concerns about the sustainability of the AI boom.
She will also have to manage employee morale and keep customers and shareholders confident after Huang's exit amid a spate of scandals.