Jensen Huang’s departure could crash the entire AI market. Investors fear the fallout

Jensen Huang’s departure could deal a serious blow to the entire AI industry: investors fear reduced funding for startups and tightened regulation.

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

Huang’s significance extended far beyond NVIDIA itself. The company became the chief supplier of accelerators for ChatGPT and Claude, as well as a kind of “central bank” for the industry, funding dozens of other companies. Now investors question whether the previous scale of investment in AI will be maintained.

The market is keeping a particularly close eye on Anthropic’s upcoming IPO, scheduled for November 18. The company expects to raise more than $60 billion at a valuation exceeding $1.4 trillion. A flop could cast doubt on the prospects of the entire AI business.

Additional concerns are tied to small cloud companies purchasing NVIDIA accelerators to rent out computing power. Under the interim leadership of Chief Financial Officer Colette Kress, the financing policy for such partners could change.

Huang’s departure could also accelerate the introduction of export restrictions on AI chips and tighter regulation of data centers. The NVIDIA chief previously opposed strict oversight of the industry, but a scandal involving a relationship with a woman suspected of spying for China severely undermined his authority.