Jensen Huang’s downfall may undo cozy ties between business and government

The resignation of Jensen Huang, together with the results of the recent congressional election, could make this a watershed moment in the relationship of American business to government, one that sees the pendulum swing back toward greater regulation and greater separation of finance from politics.

Corruption topped the list among issues that motivated voters in the overwhelming and nationwide midterm election victory for Democrats, according to the CNBC Voter Poll. It showed 90% identified corruption as a crucial or major issue in their voting decision, a percentage point higher than the cost of living.

When voters were asked which party was best able to deal with the corruption issue, Democrats led Republicans 37% to 30% — though, significantly, 32% said neither party. 

It’s impossible to know exactly what voters mean when they say corruption, but there are hints it involves the relationship of business to government. The CNBC All-America Economic Survey, taken two weeks before the election, asked respondents if elected officials, including the president and members of Congress, should personally own or trade stocks in companies that have contracts with the federal government. An overwhelming 93% said it should not be allowed. A similarly bipartisan 89% objected to the president’s family members receiving government contracts.

The upshot: The very close relationship between business and the government, which has existed under both political parties but has come plainly and brazenly to the fore in President Trump’s second administration, is now a major issue for voters.

The Huang affair encompasses all of that. Nvidia, along with several other large corporations, made large donations to the president’s ballroom. Meanwhile, there are allegations that the administration did not act when informed of potentially illegal sales of Nvidia chips to China. It may be that the president ignored warnings from inside his own administration that Huang was involved with a woman who was reportedly a potential Chinese spy, instead bringing Huang on a state visit to China and giving him say in U.S. export policies for chips.

The Trump era has seen the virtual creation of the CEO Statesman: Huang and other tech execs draped around the president during foreign trips, Jared Kushner and Steve Witkoff negotiating with Russia, Elon Musk deciding who the federal government fires.

Could the Huang affair be the end of that phenomenon?

Sen. Elizabeth Warren, D-Mass., wasted no time in signaling the new Congress was ready to get tough on tech execs. 

“It’s clear that the American people cannot rely on Big Tech billionaire CEOs to put our national security above their bottom line – which is why Congress must pass the AI Overwatch Act and other bipartisan bills to keep advanced American AI technology out of China’s hands.”

The enormity of Huang’s fall cannot be overstated. Imagine J.P. Morgan resigning — or Jack Welch or Steve Jobs or Tim Cook. Few have stood astride the…