Investors Fear Jensen Huang’s Departure Could Crash the Entire AI Market

Jensen Huang’s departure could deal a serious blow to the AI industry, as investors fear a reduction in startup funding and tighter regulation.

Huang’s sudden resignation has left one of the world’s most valuable companies without the leader who shaped its development for 33 years. He transformed NVIDIA from a small graphics card manufacturer into a leading force behind the artificial intelligence boom.

Huang’s influence extended far beyond NVIDIA. The company became the main supplier of accelerators for ChatGPT and Claude, as well as a kind of “central bank” for the industry, funding dozens of other companies. Investors now doubt whether AI investment will remain at the same scale.

The market is watching Anthropic’s upcoming IPO particularly closely. The offering is scheduled for November 18, and the company hopes to raise more than $60 billion at a valuation of over $1.4 trillion. An unsuccessful offering could cast doubt on the prospects of the entire AI business.

There are also concerns about smaller cloud companies that buy NVIDIA accelerators to rent out computing capacity. Under the interim leadership of Chief Financial Officer Colette Kress, NVIDIA’s policy on financing such partners could change.

Huang’s departure could also accelerate the introduction of export restrictions on AI chips and tighter regulation of data centers. Huang previously opposed strict controls on the industry, but a scandal over his relationship with a woman suspected of spying for China seriously damaged his standing.