Big Tech Companies

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Anthropic seeks valuation of about $1.3 trillion when it becomes a publicly traded company

Artificial intelligence giant Anthropic is looking for an approximately $1.3 trillion valuation when it goes public despite new concerns about the massive amounts debt and money flowing into the sector. Read More.   Nvidia and Jensen Huang face shareholder lawsuit alleging investors were misled about spy affair A shareholder has sued Nvidia and its CEO, Jensen Huang, accusing them of deceiving investors in their responses to media reports about Huang's affair with a purported Chinese spy that threatens national security. Read More.

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🔎 Nvidia's peril deepens

Data: FactSet. Chart: Matt Phillips/Axios Nvidia doesn't have a clear succession plan for CEO Jensen Huang, as growing spy-scandal revelations threaten his hold on the chips giant he founded, built and personified. Why it matters: The peril for Huang (pronounced wong) shows the vulnerabilities of an iconic company being so dependent on one executive — with huge risks to investors, customers and, in this case, the AI economy, Axios' Nathan Bomey and Emily Peck report. The mushrooming scale of the crisis: Nvidia controls the most valuable commodity in the world, and one man controls Nvidia. China is hungry to buy or copy Nvidia's chips, which could determine which superpower wins the AI race. After denying it, Jensen Huang admitted Sunday to an affair with Alice Huang, an executive of a Singapore-based data center company who is believed by U.S. intelligence to be a spy for the Chinese government. Jensen Huang was in frequent, chummy communication with President Trump during the affair. Trump ignored warnings from the top of his administration and allowed chip sales that benefited the Chinese spy's company. The Commerce Department was digging hard on Nvidia and the spy's company, until it abruptly wasn't amid Nvidia's interventions — reporting by The New York Times that opened a new front in the crisis yesterday. (Gift link) 🔭 The big picture: The storm over Nvidia "may exacerbate fears among investors over the durability of the AI boom, after a revolt against data centers by voters in America's midterm elections," The Economist notes. Go deeper: "Nvidia's crisis and the politics of an AI pause," by Axios chief tech correspondent Ina Fried.

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💰 Anthropic is seeking to raise up to $62.5 billion in its IPO at a market cap that could top $1 trillion. That would make it one of the largest IPOs ever, but smaller than some had expected.

Jensen Huang built the company that powers AI. Now Nvidia must find a way forward without him

Nvidia CEO Jensen Huang resigned Thursday, capping a spectacular downfall for a poster boy of the artificial intelligence boom whose exit following reports of extramarital affairs now thrusts the chipmaker into an uncertain future.

https://apnews.com/article/nvidia-megaspeed-china-singapore-huang-5403f152a601cf82ce939f1d24fffa0f?

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Jensen's blast radius

Photo illustration: Sarah Grillo/Axios. Photo: David Paul Morris/Bloomberg via Getty Images

Jensen Huang's potential ouster from Nvidia leaves a blast radius far beyond the chip giant that's the backbone of the global AI economy: The scandal will consume the new Congress, could take out Commerce Secretary Howard Lutnick, goes all the way up to President Trump, and undermines U.S.-China relations on the eve of Trump's trip to Shenzhen for a summit next week and Xi Jinping's visit to Florida for a summit next month. Why it matters: Nvidia's chips, investments and financial guarantees sustain an ecosystem of companies worth trillions of dollars, Axios' Zachary Basu writes. At the epicenter of the blast is Huang, who spent 33 years making himself synonymous with Nvidia — and Nvidia synonymous with the AI revolution. "This is no ordinary CEO. This is no ordinary company. This is no ordinary sector. This is no ordinary time," economist Mohamed El-Erian wrote on X, warning of contagion across the AI industry. 🔎 Zoom in: As recently as two weeks ago, the notion of Nvidia without Jensen was unthinkable. Even after his affair with a suspected Chinese spy came to light, Trump and Nvidia's board stood behind him, Silicon Valley's elite rallied to his defense and betting markets suggested he would survive. A New York Times revelation yesterday that Huang had a second affair as recently as March — this time with an Nvidia executive who reports to him — shattered that consensus of support and put his storied reign in jeopardy. Driving the news: After that second affair came to light last night, Nvidia's board reportedly met to settle Huang's fate, though there was still no decision as of early this morning. The White House was read in. The market reaction has been brutal. Nvidia had already shed more than $1 trillion in market value since the initial scandal erupted, and shares plunged further in after-hours and pre-market trading. One of Wall Street's most prominent voices on tech, analyst Dan Ives, said Nvidia was worth 25% less without Huang. Data: FactSet. Chart: Matt Phillips/Axios Zoom out: Huang's rise was the stuff of Silicon Valley legend: The Taiwanese immigrant went from cleaning toilets at a Kentucky boarding school and waiting tables at Denny's to building one of the most valuable companies in history. Huang and two fellow engineers hatched the idea for Nvidia at a Denny's booth in 1993, launching a chipmaker that would revolutionize gaming, transform modern computing and ultimately power the AI revolution. Clad in his trademark black leather jacket, Huang became a global AI rock star — with a cult of personality that drew adoring crowds, calmed markets and commanded the attention of world leaders. 🖼️ The big picture: Huang's crisis comes amid mounting anxiety over the AI industry's future, as new financial, political and regulatory risks threaten one of the largest infrastructure buildouts in history. The timing is especially fraught for Anthropic, whose historic IPO — backed by a $10 billion commitment from Nvidia — looms as a referendum on Wall Street's faith in the AI trade. Huang spent years defending the industry's soaring valuations and dismissing warnings of a speculative frenzy. Now his own scandals could help burst the bubble he insisted didn't exist. 👀 What to watch: The blast radius could extend far beyond Silicon Valley and Wall Street, threatening to engulf the Trump administration in a scandal over its handling of sensitive technology exports to China. Huang forged a close alliance with Trump and Commerce Secretary Howard Lutnick, who loosened restrictions on chip sales even as other officials raised concerns about Chinese espionage and smuggling. Two top Senate Democrats, Sens. Elizabeth Warren of Massachusetts and Chris Coons of Delaware, demanded yesterday that Lutnick and other top Trump officials preserve records of their dealings with Nvidia and Huang.

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It's way bigger than just Nvidia

Photo illustration: Sarah Grillo/Axios. Photo: Joel Saget/AFP via Getty Images The future of Nvidia, the AI industry and even the economy itself are all massive unknowns after CEO Jensen Huang was shown the door today. It's impossible to overstate Huang's importance to the company or the AI world more broadly, Axios' Madison Mills writes. Huang's resignation follows revelations about two extramarital relationships. The N.Y. Times reported yesterday that Huang had a relationship with senior Nvidia executive Kimberly Powell. 🔎 Nvidia's board was already investigating his relationship with Alice Huang, a businesswoman identified by U.S. intelligence as a Chinese intelligence asset. Alice Huang's company, Megaspeed, is accused of violating export controls on advanced tech by illegally diverting U.S. computer chips to China. This will likely go down as one of the biggest executive scandals in history, reaching well beyond Nvidia itself. Nvidia and its chips fuel much of today's AI boom. Any turmoil there could have far-reaching economic consequences. 🏛️ Lawmakers also want to know what the Trump administration did or didn't do in response to prior intelligence about Huang's relationship with the alleged spy. They're targeting Commerce Secretary Howard Lutnick, who oversees export control policy. Axios first reported that Lutnick was sent intel about the spy relationship and repeatedly did not take export control action, despite pressure from the broader administration and President Trump himself. Lutnick maintains Trump's support, Axios' Maria Curi reports. Data: Financial Modeling Prep; Chart: Alex Fitzpatrick/Axios Nvidia's massive size makes it one of the largest holdings in major index funds, meaning Huang's departure has huge implications for every American with a retirement account. The company's stock is down about 5% from yesterday as of midafternoon, but has been falling for weeks. 👩‍💼 What's next: Nvidia's board named longtime CFO Colette Kress as interim CEO. Kress told staffers today: "I believe deeply in this company and in its future. More than anything, I believe in each of you, in our customers and partners and in the vital role we play every day in the global economy." Go deeper.

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What we know after Jensen Huang resigns as Nvidia's CEO

Nvidia CEO Jensen Huang has resigned from his top post at the chipmaker he co-founded, after reports of the tech titan's extramarital affairs came into the spotlight this week. Read More.   Jensen Huang built the company that powers AI. Now Nvidia must find a way forward without him Nvidia CEO Jensen Huang resigned Thursday, capping a spectacular downfall for a poster boy of the artificial intelligence boom whose exit following reports of extramarital affairs now thrusts the chipmaker into an uncertain future. Read More.   Who is Colette Kress, Nvidia's interim CEO? Longtime exec takes top spot after Jensen Huang resigns Nvidia has appointed a 13-year veteran executive behind some of its biggest financing deals as interim CEO after the abrupt resignation of its longtime leader shook Silicon Valley. Read More.

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New Nvidia CEO

Nvidia CEO Jensen Huang resigned yesterday amid reports of extramarital affairs and an investigation into whether he was targeted by a foreign intelligence operation. Chief Financial Officer Colette Kress will serve as interim CEO while the company searches for a successor. Huang faced mounting pressure after admitting to infidelity amid reports linking him to Alice Huang, a former executive at Singapore-based Nvidia customer Megaspeed whom US officials suspect of spying for China. On Wednesday, The New York Times reported a second affair with a senior executive who reported directly to Huang, while Reuters reported allegations of a third affair yesterday, after his resignation. Independent directors and outside counsel are examining potential espionage risks, while the FBI is conducting a separate inquiry. Nvidia has lost more than $550B in market value since its board announced an investigation Sunday. (Explore a timeline of the scandal.) Huang cofounded Nvidia in 1993, transforming it into an artificial intelligence powerhouse. Hear how he went from a Denny's dishwasher to one of tech's most influential leaders—and see how his departure could shake the entire AI industry.

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Post-Jensen era

Illustration: Aïda Amer/Axios. Stock: Getty Images

With rival chips getting better and recent software breakthroughs, the tech ecosystem has achieved what would've seemed impossible a year ago: a viable path around Nvidia, Axios' Ina Fried and Bradley Olson report. But replacing a CEO willing to bankroll startups, backstop billions in cloud debt and aggressively fund rivals to the AI giants will be much harder. The next chapter without Jensen Huang will be more cautious, but the industry is capable of absorbing the change, for two key reasons: 🦾 New chips: The progress of custom chips from Google, Amazon, Microsoft and OpenAI, as well as new deals with Broadcom and Nvidia rival AMD, means customers have options. 🏛️ Washington: China hawks are ascendant in D.C. — and the departure of Huang, an advocate for keeping AI chip sales to China open, could accelerate a crackdown on controls that was already underway. Cutting off those routes could help protect America's lead and offer a major pre-IPO boost to Anthropic and OpenAI. Two reasons a weakened Nvidia could roil the industry: 💰 Finance: The company's checkbook will be far more difficult to replicate than its computing power. Nvidia has made $530 billion of off-balance-sheet commitments and guarantees, according to data firm SemiAnalysis. 👀 Open models: Huang has been the most enthusiastic funder and champion of the Western open-model ecosystem — giving developers cheaper alternatives to the expensive offerings from frontier AI companies. Read on.

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Fallout from the Nvidia scandal may dampen the exuberance around the AI boom Nvidia CEO Jensen Huang's stunning resignation has sent ripples through the global technology industry, with rival chipmakers itching to take advantage of the uncertainty. Read more.

Why this matters: Some of Nvidia's biggest rivals, such as Broadcom, Intel and Advanced Micro Devices, saw their shares advance Thursday following Huang’s departure as investors predicted that its customers will look to diversify their suppliers. In the end, analysts say, this might not be a bad thing. “This could turn what has effectively been a monopoly into a horse race again, as competitors rush to meet growing demand,” said Bret Greenstein, chief AI officer at the global consultancy West Monroe.

RELATED COVERAGE ➤ Who is Colette Kress, Nvidia’s interim CEO? Jensen Huang built the company that powers AI. Now Nvidia must find a way forward without him Advocacy groups sue AI giants to freeze new models, warning of ‘catastrophic’ risks