After yet another extramarital affair blew up in public, Nvidia's board cranked up the pressure on Jensen Huang. He finally resigned as CEO, and only with extreme reluctance. Privately, he called himself a "piece of shit." But by then, regret came too late.
Resignation Sparks Washington Firestorm
Huang wanted calm. The storm had other ideas. He may have quit, but he has failed to stop the bleeding, and the sequel to this saga is about to hit the screen.
Bipartisan China hawks in Congress are already rubbing their hands, ready to put Huang through the wringer. They are also pressing Washington officials to come to Congress for a grilling. And the ultimate target in their sights is Donald Trump.
Huang's exit fails to quell storm; political fallout spreads.
Meanwhile, the fire has spread into the White House, setting off infighting inside Trump's team.
Treasury Secretary Scott Bessent tore into Commerce Secretary Howard Lutnick, accusing him of refusing to blacklist Megaspeed, the company owned by Huang Le, the woman at the center of the storm. That Trump favorite is now teetering on the edge of losing his job.
White House infighting: Bessent (left) blasts Lutnick (right), his job at risk.
Board Pressure Builds
Jensen Huang had long enjoyed smooth sailing in politics. That may be why he was unprepared for this superstorm and underestimated how ruthless the people out to destroy him could be.
Bloomberg reconstructed the inside story of his resignation. Nvidia's board had already questioned him about the extramarital affair at the end of last year, but he missed the danger signs and gave evasive answers.
When media reports kept alleging an affair with Huang Le, the board secretary showed up in person to confront him. Jensen Huang admitted it, yet still wanted to keep the CEO job.
He did not grasp that anyone determined to bring him down would have more than one "grenade" ready. If the first blast failed, a second would follow, and The New York Times duly reported that he had been involved with a female subordinate. That crossed a major line in corporate ethics, leaving the board no choice but to make a clean break and demand his resignation.
By then Jensen Huang knew he could not hang on. He had little choice but to quit, reluctantly.
Congress Circles Nvidia
But his fall from power does not close the case. The scandal has already fired up Washington's China hawks, and an even fiercer political storm is on its way.
Senate Democratic Leader Chuck Schumer took to social media today to make that clear. "Despite Jensen Huang's resignation, Congress must demand answers from Mr. Huang and others at Nvidia about how they may have put U.S. national security at risk," he wrote. He also took aim at Washington: "The Trump administration must explain its actions after learning of Jensen Huang's ties to a suspected Chinese intelligence asset."
Schumer also signaled that Congress will investigate Trump's relationship with Jensen Huang, pressing the White House on whether government officials were told to stay away from any investigation because of the ties between the two men. He went further, demanding to know what exactly Huang knew when he traveled to China with Trump aboard Air Force One in May this year.
Schumer is not acting alone. In the House, Foreign Affairs Committee Chairman Brian Mast, joined by the chairs of two other committees, has sent a letter to Huang demanding that he attend a closed-door briefing next week to answer questions.
All of them are China hawks. For them, this is only the first cut of a slow-slicing operation, and Trump's own lieutenants will not be spared either.
Cabinet Rift Over Megaspeed
The firestorm has reached the White House, and Trump's team is turning on itself.
U.S. media reported yesterday that Treasury Secretary Scott Bessent confronted Commerce Secretary Howard Lutnick during a closed-door meeting in the White House situation room. Bessent demanded to know why Lutnick had refused to blacklist Megaspeed, a Singapore company linked to Huang Le. Secretary of State Marco Rubio was in the room and backed Bessent.
Lutnick is one of Trump's valued lieutenants. His handling of Megaspeed also turns on Trump's own stance, which makes the fight more complicated.
The Department of Treasury has repeatedly pressed to put Megaspeed on the Entity List, according to U.S. media reports. Department of Commerce has been slow to move.
Bessent is not Lutnick's only problem. Secretary of State Marco Rubio, who also runs the White House National Security Council, takes a hawkish line on the issue. That adds to the pressure on Lutnick from inside the administration.
Some reports say White House officials are debating whether Lutnick should stay or go. Trump still has confidence in him, and so far he appears unwilling to fire him.
Lutnick is now caught in a two-front fight. Congressional Democrats are also taking aim at him, demanding that he and Jensen Huang testify together.
Under pressure from the hawks, Lutnick agreed to face questioning before Congress on December 3 and 10. He will have to spell out his relationship with Jensen Huang.
Hawks Eye Trump
Every twist in this saga has followed the China hawks' script. Huang's fall will not make them stop. It will only spur them to turn up the fire and hunt him down relentlessly.
Nor will the purge end with Huang. Other tech titans and senior officials are unlikely to escape either.
Their final target is Donald Trump, a president already hobbled.
Lai Ting-yiu
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