Play store
Colette Kress, who has been appointed interim chief executive officer of Nvidia, previously served as the chipmaker’s chief financial officer (CFO). The 59-year-old will lead the world’s leading chipmaker until a permanent successor is appointed following the departure of co-founder Jensen Huang.
According to Reuters, Kress often acted as a financial counterweight to Huang’s ambitious business plans, particularly his aggressive investments in artificial intelligence (AI) infrastructure and funding agreements with other companies.
The two reportedly had differences over investments worth billions of dollars and financial arrangements with AI firms, including OpenAI and Lambda. Some Wall Street investors have raised concerns that such deals could create circular flows of money within the AI industry.
A person familiar with the matter told Reuters that Kress and her team disagreed with Huang and Nvidia’s sales division over several large and potentially risky financing arrangements.
One example was a proposed $25 billion support package for OpenAI’s data centre project in Ohio, which was eventually reduced to $12 billion.
Huang had strongly encouraged Nvidia to invest in its customers and finance startups, a strategy that reflected his willingness to take significant business risks.
People familiar with Nvidia’s internal operations describe Kress as calmer and more pragmatic than Huang. They believe her measured leadership could help maintain market confidence and stabilise the company during the transition.
Before joining Nvidia in 2013, Kress held senior positions at several major technology companies, including Microsoft, Cisco and Texas Instruments.
She has recently participated in discussions aimed at reassuring Nvidia’s customers and suppliers amid uncertainty surrounding the company’s leadership.
Her appointment could also signal a shift in Nvidia’s approach to dealing with the US government, particularly over export controls, Reuters reported.
However, questions remain about whether Kress can maintain Nvidia’s technological momentum in the long term. Some analysts and investors believe her financial background may make it difficult to match Huang’s technological vision and appetite for risk.
Anschul Sagar, chief analyst at Moor Insights & Strategy, described her interim appointment as a reasonable move to calm the market but expressed doubts about her ability to provide the long-term visionary leadership needed to sustain Nvidia’s growth.
Meanwhile, Nvidia shares fell nearly 14 per cent on Thursday following reports of Huang’s departure, reaching their lowest level in around 16 months before recovering some ground.
