The Bedroom Problem The World’s Most Valuable Company Has To Explain

Jensen Huang is the head of Nvidia, the most valuable company on planet Earth.

His zipper may have just cratered capitalism.

Nvidia makes the sophisticated graphics processing units, the GPUs, and the microchips that power everything from gaming to the AI revolution. Nvidia currently represents about 6% to 8% of the total value of the S&P 500. Since 2024, Nvidia has accounted for about 20% to 25% of all games, all of them on the S&P 500.

Nvidia is an incredibly well-known and well-run company. Jensen Huang is one of the most sophisticated, driven CEOs in history. There is no substitute for an excellent CEO, and a bad CEO can run your business directly into the ground. Nvidia is run in a unique way, and it revolves around him personally.

His management structure is totally flat, which means he has about 60 direct reports. Typically, when you run an organization, you have a CEO, a COO, and a CFO; you delegate business to them, and they have direct reports.

But that’s not what Jensen Huang does. Instead, he basically has everybody report directly to him. In a very good book called “The Nvidia Way,”  author Tae Kim explained the Nvidia strategy:

Jensen announced to his executive team he had figured out how to keep Nvidia ahead of the competition forever. “We’re going to fundamentally restructure the engineering department to line up with the refresh cycles,” he said. Nvidia had split up the design team into three groups. The first would design a new chip architecture. The other two would work in parallel to the first to develop faster derivatives based on the new chip. This would allow the company to release a new chip every six months, in line with PC makers of buying cycles.

In other words, Nvidia has stayed ahead of the game because it constantly reinvests profits into building the next thing; it does so on a six-month cadence, so no one can ever catch up.

The big mistake huge corporations make is that they consolidate their gains and then believe that nobody else will ever catch up to them. That’s not what Jensen Huang does. Instead, he keeps the company running extremely hard. Much of this depends on him personally.

Kim talked to Huang when he wrote the book about how greatness is achieved. Here is the relevant passage:

“People with very high expectations have very low resilience. Unfortunately, resilience matters in success,” he later said. “Greatness is not intelligence. Greatness comes from character.”17 And character, in his view, can only be the result of overcoming setbacks and adversity. To Jensen, the struggle to persevere in the face of bad, and often overwhelming, odds is simply what work is. It is why, whenever someone asks him for advice on how to achieve success, his answer has been consistent over the years: “I wish upon you ample doses of pain and suffering.”

That’s great, except now the pain and suffering are here, and Jensen Huang brought that about himself.

The climate of America right now is that Americans don’t like the tech bros. It doesn’t matter that the tech is powering America’s economic growth right now. They’re worried about AI data centers.

Last week, voters across the nation rejected new AI data center development even though it’s creating jobs and economic growth. Voters are worried about AI development because you have people like Dario Amodei over at Anthropic saying that AI development will end with nuclear annihilation.

People are deeply worried about AI’s impact on job markets. And while voters are very concerned about AI and tech, they are also highly concerned about corruption.

That was the top issue in last week’s election. Not the cost of living, not Iran, not AI — corruption. They worry that people are making bank off their connections while they themselves are lagging economically.

To add insult to injury, in October, political polls showed that a plurality of Americans believe that all the major tech CEOs are Republican. That isn’t remotely true, although Amodei is pretty obviously on the Democratic side of the aisle, but it does lay the groundwork for something that I’ve been warning about since literally the inauguration of 2025: the alignment of the Trump administration with the tech bros. It makes it look as though they are in bed together, and if it looks as though they are getting special privileges, that will all come crashing down.

If there’s a hint of corruption, Democrats will jump on that with both feet.

And now here we are.

On Sunday, Nvidia had to open an investigation into Huang after he acknowledged he had been intimate with a business executive, Alice Huang. U.S. intelligence determined she was a Chinese spy.

Huang’s relationship with the woman became a U.S. government concern after surveillance revealed she was feeding information directly to Beijing.

Nvidia says there is no reason to believe national security was compromised or that Nvidia’s secrets went to the Chinese, but the board’s inquiry will examine all available information.

They’re stuck between a rock and a hard place. Nvidia without Jensen Huang is not Nvidia, and everyone knows it.

The issue immediately raises questions as to what the Chinese knew about Nvidia’s tech. If China got hold of it, they would be significantly more competitive, not just in AI, but in defense tech that is linked to AI.

It also means the Chinese might have known about Nvidia’s lobbying of the federal government to allow sales of Nvidia chips to China. But it gets even worse than that, because if you show ties between that and the administration, then the Democrats have all the leverage in the world to apply against the tech companies generally.

It looks as though Jensen Huang was sleeping with a Chinese spy; the Commerce Department was investigating, there was a conversation at the highest levels of the Commerce Department with Nvidia, and then the investigation suddenly went away.

It’s not just that; according to Wired, “Jensen Huang began working with a crisis communications firm known for handling public scandals, a year before he admitted to having an extramarital affair with a woman suspected by U.S. intelligence of being a Chinese spy. Risa Heller is the firm’s founder, and she has built a reputation as a fixer for powerful men facing allegations of sexual misconduct and other personal controversies.”

This has been brewing for a year.

The good news about capitalism is Nvidia isn’t the only game in town. Broadcom and AMD rose 9% and 13%, respectively.

But this is going to open the door. It’s not just about what happens to Nvidia. It is about how Democrats will use this issue. Democrats will use the appearance of impropriety and corruption to bring down the tech boom on our heads.

That is their goal.

There’s going to be bipartisan outrage here because Republicans are upset about the Chinese angle to this, and Democrats are upset about the fact that tech companies exist in the first place, and even more upset that these tech companies work with the administration.

If they see an opportunity to make political hay, if the number one issue is corruption in the last election cycle and people are dyspeptic about AI, what a wonderful story for Democrats.

Here’s the biggest thing: The Democrats who just joined Congress have no incentive not to strangle the economy. The incentive structure is actually the other way around. It is totally in their interest for Democrats for the economy to crater.

Let me take you back through a little bit of history. In 2004, the Republicans won. George W. Bush won. By 2006, the Democrats had taken control of Congress, but Bush was still president.

Then the economy tanked in 2007. The responsibility was placed on George W. Bush, and in 2008, Barack Obama was elected president of the United States, and soon after had a supermajority and rammed through Obamacare.

A bad economy with Republican presidents ends in catastrophe for those Republican presidents — and for their heirs.

Democrats have every intention right now of hard-driving this issue into the ground.

Of course, this is not about principle. It’s not that the Democrats are particularly upset about Chinese spies. Remember, Chinese spies exist all over the United States, disproportionately in Democratic campaign offices.

This story is a Democratic Party dream come true. It’s a recession packaged in populism and a corruption narrative.

It raises the very real aspect of human life on this planet, which is that people are weak and sinful. People make mistakes. People do things that are stupid. The smartest people you know will do dumb things. Jensen Huang, a brilliant human being and one of the richest people on Earth, was drawn into a Chinese honey trap.

That’s because men are still men and still have zippers. And that will never stop. Not ever.

But if the countervailing effect of this is to destroy the tech boom, if the countervailing effect of this is all going to be Democrats dragging up every major tech CEO, reaming them, dragging them over the coals, connecting them with the Trump administration, taking Trump administration corruption and tying it to the tech sector, what you’re going to get is a recession.

People will blame the Republicans.

And then Democrats will be elected on the back of a recession.