A Scandal at the Center of the Economy

This scandal holds an irony that’s especially befitting of the AI moment. Huang seemingly has cozied up to his industry’s No. 1 foe, China, the boogeyman that, by the professed logic of Silicon Valley’s AI executives, is forcing many of his peers to build a product that they fear. Instead of denouncing him, Washington and Silicon Valley are motivated to circle the wagons around Huang, in part because doing so keeps the system moving and the money flowing. The build at all costs rationale that dictates treating China’s AI prowess as an existential threat is also driving the same people to brush past an egregious dalliance with that enemy.

This is the type of warped incentives that the AI race produces. Playing the game necessitates embracing preposterous risk to justify an idealized future outcome. To run this race requires its participants to withstand intense cognitive dissonance and behave in ways that make them appear ever more inscrutable and reckless to those who are not involved. If nothing else, Huang is a useful example to understand what happens when the fortunes of countries and many of its most powerful citizens are all tied up in one progressively intricate technological and financial bet. In this way, Huang is the AI boom personified, a hyperobject of a man who has wound his way into the center of the economy and whose influence, depending on how you look at it, may usher in either prosperity or untold doom.