Gavekal Technologies

The Nvidia scandal looks sure to topple CEO Jensen Huang and put the company on a very rocky course for a few months. The headlines have focused on the romantic and spy stories, but the crucial issues lie elsewhere. The big risk for Huang and Nvidia is that they might be found guilty of breaking US export control rules by colluding in the illegal transshipment of AI chips from Singapore to China. The Chinese AI industry, which already has a tough time getting enough advanced chips, could soon find it even tougher, as there is a good chance that the US Congress will soon act to tighten up export controls.

Efforts to clean up the US’s sclerotic system for approving energy infrastructure have failed twice before. The third time may be the charm, as the Bipartisan American Affordability and Jobs Act or BAAJA cleared its first procedural hurdle in the Senate on Monday. If it passes despite last-ditch opposition by environmental groups, it will massively boost America’s ability to scale up its electricity grid, on a three to-five year horizon. This will remove an important constraint on both AI data centers and manufacturing.