Editor's Choice: Nvidia's AI empire stumbles over Huang's human error

Editor-in-Chief’s Picks Editor's Choice: Nvidia's AI empire stumbles over Huang's human error Akito Tanaka shares his weekly reflections and recommendations Asian access to servers with Nvidia acceleration units could become more difficult as U.S. national security concerns over China's attempts to acquire AI technology increase. © AP AKITO TANAKA November 13, 2026 14:40 JST Hello from Tokyo. Jensen Huang, the cofounder and chief executive of Nvidia, who has basked in the spotlight of the AI boom, has come crashing down from center stage in the global tech industry. Allegations have emerged that Huang had an intimate relationship with a woman suspected of being a Chinese spy. Exposure of another relationship -- this time with a company executive -- has added to the scandal. Nvidia's board announced on Thursday that Huang has resigned as president, CEO and board member, effective immediately. It's like a plot from a James Bond movie. A rock-star CEO who built the world's most powerful chip company finds himself at the heart of an espionage scandal involving cutting-edge AI technology, one of the most sensitive battlegrounds in the U.S.-China rivalry. The timing could hardly have been more dramatic. Democrats, who have taken an increasingly tough stance toward Big Tech and tech billionaires, have just won control of both chambers of the U.S. Congress . Meanwhile, President Donald Trump, who has maintained close ties with Huang, has spoken out in support of him since the scandal broke. Next week, Trump is scheduled to meet Chinese President Xi Jinping during the APEC summit. With so many developments converging at once, it is hard not to wonder whether the timing is entirely coincidental. The shock waves will be felt across Asia's tech industry. Nvidia and Huang have become virtually synonymous. The company's public image centers on its charismatic leader in a black leather jacket. Nvidia, which designs the world's most advanced AI chips, is one of the most important customers of Taiwan's TSMC, Asia's largest tech company by market capitalization. Huang has frequently visited Taiwan and other parts of Asia, solidifying strong relationships with the region's leading tech executives. If Nvidia loses momentum without Huang's leadership, the consequences for Asia's technology supply chains could be profound. His departure could also give China's semiconductor companies a chance to gain ground, potentially shifting the balance of tech power between the U.S. and China. The repercussions for financial markets could be just as severe. Nvidia shares plunged following news of Huang's scandal. Nvidia is much more than a chip designer. The company has also become something of a central bank for the AI industry, providing massive funds to leading AI startups and cloud computing companies that, in turn, purchase its chips. This has made Nvidia a crucial source of capital and confidence for the broader AI ecosystem. The sudden loss of Huang, effectively the governor of this AI central bank, could raise fresh questions about the sustainability of the AI-driven stock market boom. That said, despite Huang's departure, Nvidia's financial performance is unlikely to suffer any immediate direct impact, as global tech giants remain heavily reliant on the chip giant's dominant market share in advanced AI semiconductors. However, it's difficult to overstate the consequences of losing such an iconic leader . If Nvidia loses its way without Huang at the helm, the fallout could spread far beyond the company itself in the not-too-distant future, affecting the global technology industry, geopolitics and financial markets. The outcome would carry a bitter irony. Nvidia, the company that has ushered humanity into the age of AI, has hit its biggest hurdle because of a very human error at the top. Please stay tuned to Nikkei Asia for more coverage. My suggested reads 1. Prime Minister Anutin Charnvirakul is sending shock waves through Thailand's foreign investment community. He is enforcing long-flouted laws through which tens of thousands of foreigners have illegally used local nominees to control companies that own land worth tens of billions of dollars. Observers say the campaign is particularly targeting Chinese and Russians, but people of all nationalities are being caught up in it. There are also suggestions the initiative is linked to Thailand's bid to join the OECD, the Paris-based forecasting agency. 2. The mega-profits being generated by Asia's memory chip makers from booming AI demand has benefited top executives and investors, but the bunny-suited workers in production clean rooms are now claiming their share of the spoils . Growing union activism at Samsung Electronics means chip employees there can look forward to a special bonus worth more than $500,000 each following an all-out strike. In Taiwan, freshly unionized chipworkers at Micron's plants are seeking similar bonuses to their South Korean counterparts. While this new wealth is boosting home and luxury car sales in the Seoul area, it is also creating resentment among fellow workers in other less-well-paid departments at Samsung, and distorting a labor market where wages are generally much lower and stagnating. 3. A little more than 200 years after his forefathers founded a sake brewery, Toshiyuki Kiuchi is racking up global awards for high-end whisky . Like many of his peers in a consumer sector facing the impact of Japan's rapidly declining population, Kiuchi turned to the brown liquor as Japanese whisky surfed a wave of popularity overseas that began 25 years ago. As of April this year, the number of Japanese whisky distilleries -- operating, under development or in the planning stage -- had rocketed to a record 127, a 16-fold increase from 2010. Wishing you a wonderful weekend! 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