The final day of the Web Summit in Lisbon, one of Europe’s largest technology conferences, was marked by the sudden resignation of Jensen Huang, the CEO of chipmaker Nvidia. Huang stepped down on Thursday following revelations of two extramarital affairs.
US intelligence reportedly suspects that one of the women involved was spying for China, a claim that Beijing has rejected.
In the wake of his departure, Chief Financial Officer Colette Kress has been appointed as interim CEO while the company searches for a permanent successor.
Adam Kobeissi, founder and editor-in-chief of The Kobeissi Letter, criticized the resignation, stating that Huang’s exit would be a net negative for investors over the next few years, though he maintained his overall bullish outlook on Nvidia.
Kobeissi added that he does not expect the leadership change to impact the upcoming stock market debut of Anthropic, the AI firm behind the Claude models, which is seeking a valuation of up to $1.4 trillion (€1.25tn).
Beyond the corporate leadership shakeup, the summit’s final day was packed with sessions condensed from Wednesday’s cancelled program. The Portuguese government had advised the cancellation due to a state of emergency ahead of Storm Charles, though the city ultimately experienced only heavy rain and minor flooding.
Professor Galbraith suggested that Chinese technology could eventually undercut Nvidia’s market position, raising questions about the hundreds of billions of dollars that major hyperscalers like Microsoft, Alphabet, Amazon, and Meta are pouring into AI infrastructure.
Framing the global economy as a contest between two systems, Galbraith noted that while the US allows for rapid private fundraising, China can centralize research and economic intervention.
He stated he would tentatively bet on China to win the AI race and potentially become the world's largest economy in the coming decades.
The discussion also focused on the scale of US government debt. Kobeissi warned that one in five dollars spent by the US government goes toward paying interest on the debt, rather than paying down the principal. US Treasury data shows Washington spent $1.1 trillion (€988bn) on net interest in the fiscal year to September, accounting for 19% of its revenue.
Kobeissi noted that the US debt-to-GDP ratio is at World War II levels and that the debt market is signaling a long-term environment of high interest rates. He warned that on the current path, there is a 100% chance of bankruptcy, though he clarified that a 2008-style crisis is not imminent.
Professor Galbraith recalled how, during the COVID-19 pandemic, US President Donald Trump and a Democratic-controlled House agreed on market relief, but warned that such cohesion might be lacking now. In last week's US midterm elections, Democrats won 255 House seats to the Republicans' 169, according to AP's count, with several states still tabulating ballots.
When asked for a prediction, Professor Galbraith stated that the nature of financial crises is that they cannot be foreseen, though he acknowledged concerning signs.
