Jensen Huang resigned as chief executive officer of Nvidia on Thursday, effective immediately, following allegations of misconduct. The AI chipmaker announced the move, citing the need for a transition period. Huang, who had led the company for over three decades, is accused of engaging in a personal relationship with an individual linked to Chinese intelligence.

The resignation comes after weeks of mounting pressure. Internal investigations and media reports have intensified scrutiny over Huang’s conduct. Multiple outlets described his final hours as emotionally drained, with some reporting he appeared “broken and shattered.” His decision to step down was described as unconditional, marking a dramatic end to his long tenure.

Huang’s departure has triggered broader implications for Nvidia and the tech sector. The company faces regulatory and reputational challenges, while the U.S. Government has intensified its oversight of technology exports to China. Analysts suggest the scandal could dampen enthusiasm for the AI industry, which has seen rapid growth in recent years.

This is not the first time Huang has faced controversy. Earlier this year, he was urged by former President Donald Trump not to resign despite the allegations. However, the pressure from both internal and external forces led to his abrupt exit.

The situation highlights the growing scrutiny of corporate leadership in the tech industry, particularly around ethical and legal standards. As investigations continue, the impact on Nvidia’s future remains uncertain.