The Huang Affair
From GOATED to SCAPE-GOATED
How is the Huang Affair event going to affect the AI theme going forward?
Let's not forget, it's all one trade: The indices, passive investing, your 401(k)... the whole economy.
If you'd like to brush up on this connection, read Your 401(k) is a Ponzi.
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October 28th: We published The People Vs Big AI
Philoinvestor
A week after that: The Democrats swept the Midterms, and put a stop to a number of things all at once.
- Republican control of both chambers of Congress
- Donald's sway over the Republican party
- Donald's cult of personality
Many seem to be shocked that Trump and the Republicans were punished at the polls – but that's not the focus of this article.
After the market had time to digest the results of the election and the expected political response, AI stocks went on a tailspin. As with every flash crash, several funds blew up.
The Huang Affair
Amidst Midterm Election chaos – rumours of the Huang Affair were getting louder. Photos were circulating the internet with Jensen and Alice (both Huangs) for months before this became official.
But things suddenly accelerated...
October 29th: The Guardian reports Jensen had been allegedly targeted by a Chinese intelligence operation.
November 6th: The NYT jumps on the story, and brings it into closer focus.
November 8th: Jensen publicly acknowledges the affair by sending a memo to all Nvidia employees. This includes both his children.
On the same day, the Nvidia BoD announces an independent investigation – but stated that they have no reason to believe that Nvidia or state secrets had been compromised.
EVERYTHING SUPREMACY
We've said a lot over the years about the importance of Everything Supremacy for the US.
With Technological Supremacy being a huge part of that – and AI clearly being a huge part of that.
- Democrats, fresh from their big win, called for a full congressional briefing on the matter – asking for tighter export restrictions of AI technology to China.
- Heavyweight Democrat Senator Elizabeth Warren, and Republican Senator Jim Bank made a joint statement on the matter.
Warren, Banks Statement on NVIDIA's Continued Export of Advanced AI Chips Following Reports of Foreign Intelligence Operation. November 9, 2026
In March, bipartisan members of Congress urged the Department of Commerce to suspend or reconsider NVIDIA's export licenses to China and conduct a full national security review. Since then, NVIDIA has reportedly received approvals to export hundreds of thousands of advanced AI chips to China, including to companies tied to China's military, all while attempting to influence the debate over chip controls in Washington, D.C.
NVIDIA CEO Jensen Huang's confirmation of a relationship with a suspected spy for China's intelligence service makes these national security concerns even more urgent and raises important questions NVIDIA must answer about the extent to which these activities were related.
It is time for Congress to take decisive action to pass key bills like the AI Overwatch Act in the NDAA that will cut off pathways through which China accesses advanced chips. The Commerce Department should complement these efforts with immediate action to close export control loopholes and ensure that advanced AI chips are not going to China's military.
My Take🦉
The timing of all this is a bit suspicious. As are many other things.
Alice Huang's operation on Jensen Huang could have been both an intelligence operation and a business operation.
