Statement made to CalPERS board Meeting on Jan 21 2026 at 3pm PT:
I speak today to express serious concern and to suggest a course of action for this board. As you may be aware, companies in which this fund holds significant positions have entered into an extraordinary—and arguably unconstitutional—arrangement with the federal government. On August 10, the Trump administration announced an agreement with NVIDIA and AMD requiring the remittance of 15 percent of certain China GPU sales to the United States government. In fact, at this time, the president credited NVIDIA CEO Jensen Huang with negotiating the figure down to 15% from 20%. On December 8th, the president raised the demand to 25 percent, and CES in January Huang said, “We’re getting the last details of the licensing finished with the U.S. government.” On January 13 Bureau of Industry and Security published the licensing policy to the federal register where the 25% export fee was implemented through a requirement that the chips, which are produced outside the United States, be imported first where the fee is levied for an inspection prior to its re-export.
This deal as previously described is unprecedented in U.S. export-control history and raises serious constitutional and fiduciary questions. It functions as a de facto export tax, precisely what the Constitution’s Export Clause forbids. Furthermore, the administration has no right to demand, nor the company has no right to offer a cut of revenue in exchange for an export license. Administration officials acknowledged its dubious legality, when White House spokesperson Karoline Leavitt conceded in August that, in her words, “[t]he legality of it…is still being ironed out.” Public statements by both the president and CEO Huang suggest that there were continued negotiations for the deal over the last several months.
These arrangements as described so far set a dangerous precedent for both markets and the rule of law. Shareholders, especially those with CalPERS’ influence, should not allow public companies to normalize unlawful bargains with the government in violation of their fiduciary duty. CalPERS has an established record of governance activism, including its high-profile challenge to ExxonMobil’s board.
I ask you today to consider action to study and engage counsel on this matter.
Thank you for your consideration.
© 2026 Stephen Walker. All rights reserved.