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For years, Colette Kress was among the few executives at NVIDIA willing to question Jensen Huang's billion-dollar bets, even when it meant standing up to the company's powerful chief executive.
Their working relationship was marked by disagreements over strategy, financial risks and the pace of the chipmaker's artificial intelligence expansion.
Now, following Huang's resignation as NVIDIA CEO amid reports of relationships with a woman suspected of having links to Chinese intelligence and two company executives, Kress has been named interim chief executive.
According to reports by Reuters and The Wall Street Journal, the relationship between Kress, 59, and Huang, 63, had become increasingly strained.
At a meeting in August, Huang reportedly interrupted Kress's presentation and called her a "deer in the headlights."
The meeting came amid growing questions over the scale of NVIDIA's investments in artificial intelligence and whether the returns would justify the enormous sums being committed. Huang had pushed for multibillion-dollar deals, while Kress and her team raised concerns about the financial risks involved.
KRESS EMERGED AS A COUNTERWEIGHT TO HUANG'S AI BETS
Kress, who has served as NVIDIA's chief financial officer for 13 years, developed a reputation as one of the few senior executives willing to challenge Huang's more ambitious proposals, Reuters reported.
As concerns grew across the technology industry about potential investments in AI, Kress reportedly questioned deals that involved NVIDIA providing financial support to its customers and business partners.
One such proposal involved a reported $250 billion plan to support an OpenAI data centre project in Ohio. Kress and her team pushed back on the arrangement, which was subsequently scaled down to $120 billion, according to Reuters.
The report also detailed concerns raised by Kress over proposals involving NVIDIA executives Nico Caprez, Huang's son-in-law and vice president of global AI infrastructure growth, and Raj Mirpuri, another vice president.
In the spring, the two executives reportedly told prospective business partners that NVIDIA could arrange credit-support deals within weeks. Kress, however, warned that such arrangements would require partners to share a portion of their revenue with the chipmaker. She also sought to rein in Caprez, who had been promoted to vice president in January.
DIFFERENT MANAGEMENT STYLES, DIFFERENT APPROACHES
The differences between Huang and Kress reportedly extended beyond financial decisions. People familiar with the executives described Kress as a calmer and more measured leader, in contrast with Huang's confrontational management style, Reuters reported.
Huang, meanwhile, had pushed NVIDIA to invest aggressively in its own customers, including offering financing to start-ups. One source cited by Reuters said it was unlikely that anyone other than Huang would pursue such investments on the same scale.
Kress's leadership could also bring a change in NVIDIA's approach to Washington. According to Reuters, sources expect the company to focus more on building relationships with policymakers and less on confrontations over issues such as export controls.
HUANG'S EXIT PUTS KRESS IN THE SPOTLIGHT
Huang announced on Thursday that he was stepping down as NVIDIA's president and CEO and leaving the company's board. His resignation came amid reports concerning relationships with a woman suspected of being a Chinese spy and two NVIDIA executives. The claims have not been established as fact.
The leadership change has also drawn attention to the Huang family's presence within the company. Huang's daughter Madison, her husband Nico Caprez and his son Spencer all work at NVIDIA.
The Information reported that Huang turned to Madison for advice after media reports about the relationships emerged. She reportedly urged him to find a new publicist, concerned that the company spokesperson might no longer be able to handle the situation.
Kress now faces the challenge of leading NVIDIA through a sensitive transition while the company continues to navigate the global AI boom, major investment commitments and scrutiny over its business relationships.
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