United States Treasury Secretary Scott Bessent has urged Nvidia to appoint an outsider as its new leader following the resignation of co-founder Jensen Huang amid a scandal involving extramarital affairs, one of which allegedly implicated a woman suspected of connections to Chinese intelligence.
Speaking on Fox News’s Sunday Morning Futures, Bessent emphasised that the board should look beyond its current ranks for a successor. “Given what’s happened inside the company, they need a dramatic shake-up,” he stated.
Huang stepped down on Thursday, just days after the allegations surfaced. Nvidia, a key player in the production of chips and components for artificial intelligence, is at the forefront of the competitive US-China technology race.
Huang, who had close ties with the Trump administration, had previously lobbied for relaxed restrictions on chip sales to China, a move that stirred controversy. The New York Times reported that his extramarital relationship with Alice Huang, a former executive at one of Nvidia’s clients, raised concerns among US intelligence officials about potential national security threats, although Beijing has denied any connections to espionage.
Bessent expressed doubts about Nvidia’s compliance with US export regulations and called for a speedy response from the company, suggesting a 10-day deadline for answers. He questioned whether Nvidia had knowingly engaged in dubious sales practices to boost revenue.
The controversy has propelled bipartisan efforts in Congress to tighten controls on chip exports to China, yet Bessent believes that law enforcement of existing regulations is sufficient. “We have all the rules we need; we just need them enforced,” he said.
Since Huang’s resignation, speculation about his replacement has intensified. The Financial Times reported that Rene Haas, CEO of Arm Holdings and a former Nvidia executive, is a potential candidate. Additionally, former Apple CEO Tim Cook has been floated by Trump as a suitable replacement. Meanwhile, Nvidia’s Chief Financial Officer Colette Kress is currently leading the company on an interim basis.
