- In today’s CEO Daily: Geoff Colvin on Nvidia’s Jensen Huang.
- The big story: Court hearing today on Trump’s attempt to fire Fed’s Cook.
- The markets: Global indexes fall after U.S. hits record high.
- Plus: All the news and watercooler chat from Fortune.
Good morning. Don’t envy Jensen Huang.
Yes, he runs Nvidia, the most valuable company on the planet, worth $4.4 trillion at the close yesterday. But to keep it No.1, he must lead that company through an environment of head-spinning complexity that will get harder before it gets easier. To help understand what he faces, I spoke with Jessica Brandt, a senior fellow for technology and national security at the Council on Foreign Relations, previously in the Office of the Director of National Intelligence, and before that, policy director of the Artificial Intelligence and Emerging Technology Initiative at the Brookings Institution.
“Nvidia is squeezed between Washington and Beijing,” she says. “Washington has indicated, ‘Go forth and sell [Nividia’s] H20 chips,’ but Beijing seems to be pressuring domestic firms not to buy.” That’s the short-term problem. The long-term problem may be tougher. She thinks that as China steadily improves its home-grown tech, Nvidia may not lead there at all.
Nvidia is, of course, subject to U.S. policy, but what will that be? “If you think success is about exporting American tech and the values that go with American tech, then selling more chips is a good thing. But if the goal is to constrain Beijing’s AI system from making large capability advances, then selling high-end chips seems like not a great idea,” Brandt says. “There’s a rampant debate here in Washington right now about how to balance those equities and preserve U.S. interests.” Huang is, you guessed it, caught right in the middle.
A broader problem goes beyond China. It derives from the Trump administration’s offer to let Nvidia export H20 chips to China in return for 15% of the revenue. “If we want to be able to sell American technology abroad, which I think we really do, then it’s best when these companies are credibly viewed as independent actors,” she says—that is, not in partnership with the government. “It’s not just about selling in China. The more there is the perception that firms are not necessarily independent actors, that could potentially impact their ability to sell elsewhere.”
Put it all together, and Brandt says Huang “is playing a complicated multi-tier game”—one where every move he makes is under the microscope.
We’ll be back in your inbox on Tuesday after the Labor Day holiday.—Geoff Colvin
Contact CEO Daily via Diane Brady at diane.brady@fortune.com
Top news
Court hearing today on Trump’s attempt to fire Fed’s Cook
A federal judge in Washington will hold a hearing today on a request by U.S. Federal Reserve governor Lisa Cook for a restraining order against President Trump’s attempt to fire her. Cook has now been accused by Federal Housing Finance Agency Director Bill Pulte of having a third mortgage on a house she claimed in paperwork was her primary residence. Cook’s lawyers argued it was a clerical error and that no one was harmed by her mortgages. Cook has not been sued or charged for the incident. Cook’s suit argues that the allegations are merely a smokescreen for Trump’s political campaign to replace her at the Fed with governors who are more amenable to his desire for lower interest rates.
S&P 500 closes at record high over 6,500
The broad list of U.S. blue chips rose 0.32% yesterday to set a new record. The index now has a price-to-earnings ratio of 30. The market hasn’t sustained this kind of valuation since the tech bubble that stretched from Q4 of 1999 to Q1 of 2002, Shawn Tully writes.
Accenture CEO Julie Sweet: don’t flinch when offered the big job
Speaking on Fortune’s Titans and Disruptors of Industry podcast with Alyson Shontell, Sweet urged job candidates to believe in themselves: “When someone gives you a stretch role… chances are that the person offering you a stretch role is as nervous or more nervous than you are. So, don’t say anything, like: Are you sure?”
U.K. sought backdoor access to Apple’s iCloud
The U.K. government—which has long argued that the encryption on Apple’s devices and services aids criminals— sought “bulk interception access” to iCloud, Apple’s cloud backup service, the FT reports. The access would have allowed the government to access the data of customers outside the U.K., including Americans, legal filings claim.
Employees are overwhelmed by AI training
A new LinkedIn survey found that more than half of professionals think AI training at work feels like a second job. The employees specifically criticized unrealistic deadlines, complex training sessions, and confusion about the training’s practical effects.
Lamborghini CEO on tariffs
Lamborghini CEO Stephan Winkelmann told CNBC that even the luxury car company’s wealthiest customers are hesitant to buy a new car due to new tariffs on EU car parts. “They are maybe millionaires or billionaires for a reason, so they know what they’re doing and why they’re doing things,” according to Winkelmann.
Dollar General posts positive earnings
Dollar General reported stronger-than-expected quarterly earnings on Thursday with $10.7 billion in quarterly revenue. CEO Todd Vasos says the discount retailer’s delivery partnerships with DoorDash and Uber Eats are a key reason for the positive quarter.
America says goodbye to international parcels
Dozens of countries have stopped shipping parcels to the U.S. because the “de minimis” exemption to trade tariffs for items valued under $800 has come to an end. Anyone now buying merchandise from a foreigner on eBay, Etsy, Shein, Temu, and the like, will face steep price rises—assuming those companies are still willing to ship. As 404 Media put it, having a hobby like those who “buy vintage film cameras, retro video games, or vintage clothes from Japan” is now logistically difficult.
The markets
S&P 500 futures fell 0.27% this morning premarket, after the index closed up 0.32% yesterday, another record high. STOXX Europe 600 was down 0.51% in early trading. The U.K.’s FTSE 100 declined 0.37% in early trading. Japan’s Nikkei 225 was down 0.26%. China’s CSI 300 was up 0.74%. The South Korea KOSPI was down 0.32%. India’s Nifty 50 was flat before the end of the session. Bitcoin fell to $109.8K.
Around the watercooler
A tax company in Kansas City gave thousands of workers the afternoon off to celebrate Taylor Swift and Travis Kelce’s engagement by Jessica Coacci
Forget 40 hours: The Dutch get their work done in just 32 hours a week—and women made it possible by Emma Burleigh
Nvidia is positioning itself to cash in on the data center boom—even if mega-AI campuses don’t get built by Sharon Goldman
In a frozen luxury housing market, buyers are asking to ‘try before you buy’ and having sleepovers in multimillion-dollar mansions by Sydney Lake
CEO Daily is compiled and edited by Joey Abrams and Jim Edwards.
