It is really astonishing: Monopolizing a large chunk of the planets' economic capacity, causing water and power costs to skyrocket, filling warehouses with rapidly depreciating GPUs which worst case make many people unemployed and help them commit suicide, and best case help you a bit with brainstorming or being Search 2.0 are apparently all pretty much fine and expected.
But cheating on your wife? Unthinkable. How dare he?
Someone make it make sense. There are a million good reasons to hate the AI bubble and the surrounding industry, including the leaders. There are a million good economic reasons why this bubble should pop any second now, not least of which is many companies involved will run out of free cash flow and venture capital, and the bond market doesn't like their numbers.
But still, why would the affair of one man bring all this down? It doesn't meaningfully impact any of the factors mentioned. So what, maybe he circumvented some export restrictions to make even more of an absurd profit. Maybe he lost the trust of his board, okay. That might not mean good things for the company if they don't have a suitable successor, but it doesn't change their numbers in the short term, which I was lead to believe is the only thing everybody cared about.
The infidelity isn't the problem it's the single individual able to do that much damage easily co-opted by any bad actor that can afford some high priced call girls or a pedophile island. Of course the obvious solution is an economic system that isn't controlled by a few dozen people but here we are.
Yes I can see the systemic vulnerability in theory, but in this particular instance, I just don't really see why his behavior would do any real damage. Why do the markets care more about how Jensen gets his dick wet, instead of caring about the negative free cash flow of the big tech companies, the hundreds of billions of uncancelable compute spend commitments of the AI labs, their negative unit economics, the lack of a meaningful technological moat towards open-source models, or the clear and obvious overzealous planning for compute capacity? Like I said, this is the stupidest possible reason for the AI bubble to pop, and that wasn't even the intention of any of the players involved!
It's not that he was getting laid, it's that it was a chinese spy. That means tech knowledge is floating to china, which scares the market because they could compete better. It's dumb as hell.
I don't get it either. Plenty of CEOs are scoundrels and womanizers, yet the economy rages on. Perhaps being able to lie and keep secrets is crucial to the role, and he just proved he can't do it?
For the board I would think the problem is not that he had an affair but that it seems to have been linked to provision of chips. Shareholders could probably excuse indiscretion but would not want a CEO that is perceived to be diverting product stock based on personal factors rather than business reasons. It’s just about the money
I guess the difference is that Nvidia are the nexus of a collosal stock bubble that everyone knows is risky. There are plenty of reasons for that stock to drop. Maybe these kind of events are more like a waymark on a route rather than the cause itself.
In reality, Huang has very little influence on Nvidia’s ability to make (or not) the GPUs that power AI data centers or the demand for those products.
If the CEO went in a yearlong backpacking trip, nothing much would change on the ground at any well run company of that size. There are hundreds or thousands of smart people in positions to make sure that things keep going they way they should.
But in order to demand the insane salaries CEOs do, they have to sell a fiction that they’re essential leaders, uniquely responsible for the billions in profits their organizations deliver every year. So when something goes wrong with them personally, that reflects on the company, and the stock price.
The one honest exception is probably Musk, who really is responsible for the insane hype-based valuations his companies get that are completely divorced from fundamentals.
Two of the rarest skills humans can practice are true vision and effective leadership. CEOs are compensated for those abilities and their success with those skills is reflected in the stock price. He was the only CEO and never planned a successor. He was critical to the operations and future of the company. The company will struggle to replace him. They’ll be fine in flight but issues will pop up on going now.
>In reality, In reality, Huang has very little influence on Nvidia’s ability to make (or not) the GPUs that power AI data centers or the demand for those products.
What a silly take.
Huang has enormous influence in SELLING Nvidia's product. Both the video cards and the stock. He was essential to building up the AI narrative, circular financing and debt backstops financial mechanisms that prop it, and ties to the regulators and administration.
To say that are thousands of people in Nvidia able to steer the narrative like he did is mental.
What does it mean to be "too powerful"? One guy's personal life completely shatters people's trust in a stock? Doesn't that say more about the stock market and our society than it does about the Jensen?
It’s more an indication that the markets are irrational, and that the AI industry and big tech is in a big massive bubble, seeking any excuse to become unstable. As others have said, there is no reason a CEO infidelity needs to effect a company and industry that much. It’s not like the news was accompanied by reports that the operation caused American AI IP to flow to China, but the market is reacting as such.
DarthLithgow | 9 hours ago
We need a 21st century Teddy Roosevelt.
Bar_Har | 8 hours ago
Or a Johnny Silverhand
Snoo93833 | 7 hours ago
I keep thinking we can somehow right ship. Maybe we will, eventually. But Johnny objectively made things worse.
JC_Hysteria | 6 hours ago
Oof. If people are taking away that Johnny was a hero, maybe they were right about the concerns with GTA 3 & 4
bladex1234 | 38 minutes ago
Johnny Silverhand is supposed to be a warning.
JC_Hysteria | 6 hours ago
What is your perception of Teddy here?
archbid | 8 hours ago
And that they should not be involved in public policy in any way shape or form?
individual_throwaway | 11 hours ago
It is really astonishing: Monopolizing a large chunk of the planets' economic capacity, causing water and power costs to skyrocket, filling warehouses with rapidly depreciating GPUs which worst case make many people unemployed and help them commit suicide, and best case help you a bit with brainstorming or being Search 2.0 are apparently all pretty much fine and expected.
But cheating on your wife? Unthinkable. How dare he?
Someone make it make sense. There are a million good reasons to hate the AI bubble and the surrounding industry, including the leaders. There are a million good economic reasons why this bubble should pop any second now, not least of which is many companies involved will run out of free cash flow and venture capital, and the bond market doesn't like their numbers.
But still, why would the affair of one man bring all this down? It doesn't meaningfully impact any of the factors mentioned. So what, maybe he circumvented some export restrictions to make even more of an absurd profit. Maybe he lost the trust of his board, okay. That might not mean good things for the company if they don't have a suitable successor, but it doesn't change their numbers in the short term, which I was lead to believe is the only thing everybody cared about.
ApprehensivePay1735 | 10 hours ago
The infidelity isn't the problem it's the single individual able to do that much damage easily co-opted by any bad actor that can afford some high priced call girls or a pedophile island. Of course the obvious solution is an economic system that isn't controlled by a few dozen people but here we are.
individual_throwaway | 10 hours ago
Yes I can see the systemic vulnerability in theory, but in this particular instance, I just don't really see why his behavior would do any real damage. Why do the markets care more about how Jensen gets his dick wet, instead of caring about the negative free cash flow of the big tech companies, the hundreds of billions of uncancelable compute spend commitments of the AI labs, their negative unit economics, the lack of a meaningful technological moat towards open-source models, or the clear and obvious overzealous planning for compute capacity? Like I said, this is the stupidest possible reason for the AI bubble to pop, and that wasn't even the intention of any of the players involved!
randomgrunt1 | 7 hours ago
It's not that he was getting laid, it's that it was a chinese spy. That means tech knowledge is floating to china, which scares the market because they could compete better. It's dumb as hell.
BonoboBananaBonanza | 9 hours ago
I don't get it either. Plenty of CEOs are scoundrels and womanizers, yet the economy rages on. Perhaps being able to lie and keep secrets is crucial to the role, and he just proved he can't do it?
Master-Set8156 | 9 hours ago
It's because he may have gone around US sanctions on China purposely and that could put Nvidia on the line for liability.
itoodrinkzeecognac | 6 hours ago
I feel like the affair was brought about to let the China part slide under the rug
CheezyGoodness55 | 4 hours ago
It's also big news because the current US administration is reported to have been made aware of the affair / chip sanctions violation back in May.
pwnersaurus | 3 hours ago
For the board I would think the problem is not that he had an affair but that it seems to have been linked to provision of chips. Shareholders could probably excuse indiscretion but would not want a CEO that is perceived to be diverting product stock based on personal factors rather than business reasons. It’s just about the money
7952 | 3 hours ago
I guess the difference is that Nvidia are the nexus of a collosal stock bubble that everyone knows is risky. There are plenty of reasons for that stock to drop. Maybe these kind of events are more like a waymark on a route rather than the cause itself.
AtOurGates | 9 hours ago
It’s a side affect of CEO culture.
In reality, Huang has very little influence on Nvidia’s ability to make (or not) the GPUs that power AI data centers or the demand for those products.
If the CEO went in a yearlong backpacking trip, nothing much would change on the ground at any well run company of that size. There are hundreds or thousands of smart people in positions to make sure that things keep going they way they should.
But in order to demand the insane salaries CEOs do, they have to sell a fiction that they’re essential leaders, uniquely responsible for the billions in profits their organizations deliver every year. So when something goes wrong with them personally, that reflects on the company, and the stock price.
The one honest exception is probably Musk, who really is responsible for the insane hype-based valuations his companies get that are completely divorced from fundamentals.
Blackout38 | 8 hours ago
Two of the rarest skills humans can practice are true vision and effective leadership. CEOs are compensated for those abilities and their success with those skills is reflected in the stock price. He was the only CEO and never planned a successor. He was critical to the operations and future of the company. The company will struggle to replace him. They’ll be fine in flight but issues will pop up on going now.
ImaginationHopeful45 | 8 hours ago
>In reality, In reality, Huang has very little influence on Nvidia’s ability to make (or not) the GPUs that power AI data centers or the demand for those products.
What a silly take.
Huang has enormous influence in SELLING Nvidia's product. Both the video cards and the stock. He was essential to building up the AI narrative, circular financing and debt backstops financial mechanisms that prop it, and ties to the regulators and administration.
To say that are thousands of people in Nvidia able to steer the narrative like he did is mental.
JC_Hysteria | 6 hours ago
Doozy of an article, not worth reading…exactly what you’d expect it to say
wood1492 | 5 hours ago
No. It shows how evil and immoral and unethical China conducts itself….
Acrobatic_Bit_8207 | 3 hours ago
Anyone want to buy Nvidia shares? Big discounts.
Demonkey44 | 7 hours ago
I think you mean “isn’t it interesting that the tech sector is so vulnerable”.
Dynasty3310 | 7 hours ago
What does it mean to be "too powerful"? One guy's personal life completely shatters people's trust in a stock? Doesn't that say more about the stock market and our society than it does about the Jensen?
amsync | 7 hours ago
It’s more an indication that the markets are irrational, and that the AI industry and big tech is in a big massive bubble, seeking any excuse to become unstable. As others have said, there is no reason a CEO infidelity needs to effect a company and industry that much. It’s not like the news was accompanied by reports that the operation caused American AI IP to flow to China, but the market is reacting as such.
naturepeaked | 6 hours ago
Did those billions even really exist?