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Shocking to say the least! I think this is bad for AI industry as a whole.
I actually think this may be worse for the gaming industry, which more lay people will care about. Jensen was a gamer and clearly excited about pushing innovation there.

I hear they're (temporarily) replacing him with a non-engineer finance suit.

It would be shocking, but with gaming making up just 1/20 of their revenue, maybe someone who doesn't actually care just says "we're pulling back from the consumer market to focus on our real business."