Nvidia CEO Jensen Huang has resigned, marking a stunning leadership shake-up at one of the world's most powerful technology companies, following mounting controversy over his alleged relationship with a woman suspected of having links to Chinese intelligence.

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In a major development on Thursday, Nvidia named its executive vice president and chief financial officer, Colette Kress, as interim CEO following Huang's departure.

Huang had been facing mounting pressure to step down amid concerns that his alleged personal relationship could have wider national security implications. The controversy intensified after reports emerged that he had allegedly been involved in another extramarital relationship, this time with an Nvidia employee who reportedly worked under him.

The latest revelations added to the scrutiny surrounding the company's leadership, raising questions about corporate governance, potential conflicts of interest and the security of sensitive business information at the AI chipmaking giant.

The fallout was immediately reflected in the financial markets. Nvidia shares plunged nearly 10 per cent in premarket trading on Thursday, signalling investor anxiety over the sudden departure of its long-serving chief executive.

Huang, who co-founded Nvidia and transformed it into a global powerhouse in artificial intelligence computing, leaves behind a company central to the worldwide AI boom.

The leadership transition comes at a particularly sensitive moment for Nvidia, as governments and technology companies increasingly grapple with concerns over semiconductor security, international espionage and the strategic importance of advanced AI chips.