Chapter Summaries

Zhao Chen asked Lin Shicheng why Nvidia's ownership was so dispersed and what that meant for Era Vanguard's planned investment. Lin explained the causes of dilution and the regulatory limits on further purchases, leaving Zhao confident that Era Vanguard could act more aggressively if it followed the required procedures.

• Zhao Chen called Lin Shicheng again and asked why Nvidia founder Huang Renxun held only about 3.5 percent of the company.
• Lin Shicheng traced Nvidia's dilution to its early one-share-one-vote listing, costly GPU research and development, and generous employee equity incentives.
• Lin Shicheng explained that Vanguard and BlackRock had become major shareholders through passive index funds that tracked Nvidia's growing market capitalization.
• Lin Shicheng said Era Vanguard would hold about 10.4 percent after completing its position and could theoretically buy more because Nvidia had no poison pill or special voting barriers.
• Lin Shicheng warned that acquisitions above ten percent would attract SEC and antitrust scrutiny and require timely filings, and Zhao Chen concluded he could be somewhat more aggressive.

Lin Shicheng explained the filing and antitrust risks of Era Vanguard increasing its Nvidia stake, then briefed Zhao Chen on Huang Renxun’s background and management style. Zhao ordered further purchases to proceed and said he would meet Huang Renxun privately after the launch.

• Lin Shicheng outlined the SEC disclosure thresholds, possible HSR filings, and the need to approach Huang Renxun as a loyal long-term investor rather than Nvidia’s largest shareholder.
• Zhao Chen said Era Vanguard would continue buying Nvidia shares at the planned pace and instructed Lin Shicheng to handle compliance filings carefully.
• Zhao Chen told Lin Shicheng that Elon Musk had arranged a private meeting among the three of them after the launch.
• Lin Shicheng described Huang Renxun’s childhood, career, founding of Nvidia, combative reputation, perfectionism, and unusual management style.
• Lin Shicheng warned that Huang Renxun distrusted outside shareholders and preferred direct communication, while Zhao Chen listened and thanked him.

After Starworm’s successful system test, Zhao Chen met Huang Renxun at a Texas barbecue restaurant, where Huang questioned Era Vanguard’s plans for its Nvidia stake. Zhao explained his hands-off investment philosophy, and Huang ended by asking whether Zhao wanted to own Nvidia.

• Starworm’s water tower rose twenty meters, hovered, and landed safely, prompting cheers from the engineers.
• Musk invited Zhao Chen and Su Wantang to dinner with Huang Renxun at Old Joe.
• Huang Renxun said Era Vanguard had bought Nvidia shares and asked Zhao what he intended to do with them.
• Zhao Chen described Era Vanguard’s Tesla investment and said he had bought Nvidia because he understood Huang’s vision for computing and AI.
• Huang Renxun warned that past outside shareholders who tried to influence Nvidia had eventually sold their shares, then asked Zhao whether he wanted to own Nvidia.

Zhao Chen assured Huang Renxun that Era Vanguard would hold its Nvidia shares for at least five years and would not pressure him over falling prices. Huang invited Zhao to dinner again, signaling his trust, and Zhao left understanding that this mattered more than Nvidia stock.

• Zhao Chen told Huang Renxun that Era Vanguard invested to hold Nvidia for the long term, valuing its leadership more than short-term share prices.
• Huang Renxun accepted Zhao's position, and the group returned to their meal as Elon Musk discussed Starworm's next test.
• Outside the restaurant, Huang warned Zhao that Nvidia's results and share price would worsen, and Zhao said he already knew without offering a response plan.
• Huang invited Zhao to dinner in Silicon Valley, and Elon Musk told Zhao that Huang rarely extended such invitations.
• Su Wantang said Huang had been testing Zhao, and Zhao explained that Huang feared shareholders dictating how he should run Nvidia during a downturn.
• Zhao and Su Wantang drove away, with Zhao recognizing that Huang's trust was worth more than Nvidia stock.

After returning to New York, Zhao Chen planned Era Vanguard’s second $1.5 billion investment in Nvidia while Lin Shicheng prepared the required 13G filing. Zhao Chen intended to keep buying as SoftBank sold, with the goal of reaching ten percent ownership.

• Lin Shicheng told Zhao Chen that Citigroup had approved $750 million in financing secured against Tesla shares, with additional financing from Morgan Stanley and Credit Suisse in progress.
• Lin Shicheng reported that Era Vanguard had deployed its first $1.2 billion and owned about 4.8 percent of Nvidia, close to the threshold for filing a 13G.
• Lin Shicheng explained that Era Vanguard would declare itself a passive investor and file within ten days of exceeding five percent ownership.
• Zhao Chen directed Lin Shicheng to deploy the second $1.5 billion during SoftBank’s heaviest selling, saying Era Vanguard would take whatever Masayoshi Son sold.
• Zhao Chen instructed Lin Shicheng to refine the 13G draft and ensure the filing and compliance process could withstand scrutiny.
• Zhao Chen said Era Vanguard would reach ten percent once Masayoshi Son finished selling.

Zhao Chen learned that Henglong had secured a 31.2 percent stake in Bubble Mart after completing its negotiations with Wang An. Chen Xi then revealed that Green Energy Technology had achieved a major energy-storage breakthrough, leaving Zhao Chen to assess the value of a long-struggling investment.

• Chen Xi and Zhang Qingxue told Zhao Chen that Wang An had signed the IP transfer agreement, granting Bubble Mart twenty years of global rights to Mololoy and Labobo in exchange for a 1.5 percent stake.
• Chen Xi reported that Henglong would lead Bubble Mart’s next funding round at a 2.75 billion pre-money valuation, with a 550 million investment bringing Henglong’s total holding to 31.2 percent.
• Chen Xi relayed Wang An’s reaction to the deal and Zhao Chen’s message that Henglong would share Bubble Mart’s fortunes as a partner.
• Chen Xi told Zhao Chen that Green Energy Technology founder Zhou Bingcheng had visited Henglong after his company achieved a breakthrough in energy-storage materials.
• Chen Xi described Green Energy Technology’s new material as reducing storage costs by more than 35 percent while extending cycle life beyond ten thousand cycles with less than five percent degradation.

Zhao Chen discussed Green Energy Technology’s upcoming funding round and Zhou Bingcheng’s request for Henglong to waive its participation rights so industrial investors could join without undermining the founding team’s control. After hearing the legal and strategic risks, Zhao Chen settled on finding a transaction structure that protected Henglong’s rights while meeting the company’s needs.

• Zhang Qingxue told Zhao Chen that Green Energy Technology planned to raise over one billion for mass production and had approached Dening Times, Bidiya, and two central state-owned enterprise funds.
• Zhang Qingxue explained that Zhou Bingcheng had formally asked Henglong to give up its right to participate because the founding team feared losing control of Green Energy Technology.
• Zhang Qingxue confirmed Henglong had legally protected preemptive subscription rights, while Chen Xi warned that insisting on them could deter industrial investors whose resources Green Energy Technology needed.
• Chen Xi argued that Green Energy Technology was worth holding for its long-term synergy with Henglong’s new energy investments.
• Zhang Qingxue warned that waiving participation rights could set a damaging precedent, but said a carefully designed deal could preserve Henglong’s rights and satisfy Zhou Bingcheng’s goals.
• Zhao Chen considered their advice and settled on a course of action.

Chen Xi negotiated with Zhou Bingcheng over Henglong's investment in Green Energy Technology, arguing that industrial investors were undervaluing the company and that Henglong's interests aligned with its growth. Zhou had not yet responded to Chen Xi's case for a higher valuation.

• Zhao Chen told Chen Xi to make Henglong's willingness to waive some participation rights conditional on a fair valuation, and promised Henglong would not interfere in Green Energy Technology's management.
• Zhao Chen instructed Chen Xi to tell Zhou Bingcheng that Henglong could help connect Green Energy Technology with Bidiya and Tesla's supply chains.
• Zhou Bingcheng told Chen Xi that Green Energy Technology's third-generation formula had succeeded in pilot testing and that he needed one billion to build a production line and fund research.
• Zhou Bingcheng proposed a five-billion post-money valuation in exchange for twenty percent equity, citing industrial investors' funding and resources.
• Chen Xi offered to have Henglong provide the full billion at a seven-billion valuation and argued that industrial investors wanted to secure supply and control, while Henglong wanted Green Energy Technology to grow.

Chen Xi negotiated with Zhou Bingcheng over Henglong’s investment in Green Energy Technology, but Zhou remained unconvinced that Zhao Chen could secure access to Tesla’s supply chain. After Zhou left without a deal, Chen Xi called Zhao Chen in New York and recounted the negotiations.

• Zhou Bingcheng told Chen Xi that Green Energy Technology needed industrial investors to accelerate commercialization and that Dening Times required industrial investors to hold at least fifteen percent after the funding round.
• Chen Xi promised Henglong would not interfere in Green Energy Technology’s operations and showed Zhou a photo of Zhao Chen with Elon Musk, claiming Henglong could help connect the company with Tesla’s supply chain.
• Zhou said the photo was not proof of cooperation and asked for concrete evidence, such as a Tesla supply-chain contact or validation schedule, before he would commit.
• Zhou ended the meeting to discuss follow-on investment rights and valuation with management and the industrial investors.
• Chen Xi called Zhao Chen in New York and recounted the negotiations, including Zhou’s proposed valuation, funding amount, and demand for industrial investors’ stake.

Zhao Chen instructed Chen Xi to independently verify Green Energy Technology’s technical claims and investigate the strategic investors’ intentions before deciding whether to invest. Zhou Bingcheng gathered his team in Shanghai, prepared to cooperate with testing, and planned to use Henglong’s possible Tesla connection to push investors toward a fairer valuation, though he still doubted the connection was real.

• Zhao Chen told Chen Xi to arrange independent testing through CTI or SGS and investigate who was handling Green Energy Technology at Dening Times and Bidiya.
• Chen Xi assessed Zhou Bingcheng as a founder focused on commercializing his technology, and Zhao Chen said that made him worth investing in.
• On the flight to Shanghai, Zhou Bingcheng considered whether Henglong might truly help Green Energy Technology enter Tesla’s supply chain and summoned the team to a meeting.
• Old Fang trusted Henglong’s record as an investor, while Sister Liu doubted the Tesla connection and questioned how a startup without a mass-production line could enter Tesla’s supply chain.
• Zhou Bingcheng proposed letting strategic investors investigate Zhao Chen’s connection to Musk so they would reconsider Green Energy Technology’s five-billion valuation.
• Old Fang agreed on the condition that the company provide accurate data and cooperate fully with independent testing; Zhou Bingcheng assigned the team to prepare while he handled the investors.

Zhao Chen brought Green Energy Technology’s independently verified test results to Musk in Boca Chica to determine whether the technology justified Henglong retaining its right to invest in the company’s Series B round. After reviewing the figures, Musk asked if he could invest.

• Chen Xi told Zhao Chen that Huace’s independent tests confirmed Green Energy Technology’s reported results and measured a cycle life of 10,600 cycles and degradation of 4.3 percent.
• Zhao Chen asked Su Wantang to translate the report into English and book the earliest flight to Boca Chica.
• Zhao Chen found Musk at the Raptor engine test stand and gave him the report on Green Energy Technology’s third-generation thermal storage material.
• Musk said the technology’s combination of lower costs and long cycle life could revolutionize energy storage.
• Zhao Chen explained the planned Series B round and asked whether Henglong should retain its right to participate.
• Musk asked Zhao Chen whether he could invest in Green Energy Technology.

Zhao Chen secured Elon Musk’s conditional personal investment in Green Energy Technology after Tesla independently tested its energy-storage samples. He arranged to return to Magic City for the company’s Series B negotiations and left Lin Shicheng in charge of Nvidia, with a strict pause at 9.99 percent until regulatory preparations were complete.

• Musk said he would invest tens of millions of dollars in Green Energy Technology if Tesla’s laboratory confirmed the report’s results, and asked Zhao Chen to provide samples.
• Zhao Chen agreed to arrange the samples, and Musk said he would travel to Magic City after the tests.
• Zhao Chen asked Su Wantang to book him a flight from Houston to Magic City for the following morning.
• Zhao Chen told Lin Shicheng to manage their Nvidia position and stop buying at 9.99 percent until the required regulatory and communications preparations were ready.
• Lin Shicheng agreed to treat 9.99 percent as a pause line, and Zhao Chen left for China to handle Green Energy Technology’s Series B negotiations.

Zhao Chen visited Green Energy Technology’s laboratory in Zhangjiang and saw the samples being prepared for Tesla’s independent testing. He backed Zhou Bingcheng’s push for an eight-billion valuation at the upcoming Series B meeting, leaving the samples’ test results and the investors’ response unresolved.

• Zhou Bingcheng showed Zhao Chen Green Energy Technology’s pilot line and explained how the team had reduced its thermal storage material costs below mainstream products.
• Zhao Chen inspected the three sets of samples prepared for submission to Tesla’s materials laboratory and told Zhou Bingcheng he would not guarantee they would pass testing.
• Zhao Chen set eight billion as Green Energy Technology’s minimum Series B valuation and said Henglong would exercise its full participation rights if the industry investors refused.
• Zhou Bingcheng agreed to negotiate at the eight-billion valuation, and Zhao Chen instructed him to hand the sealed samples to Chen Xi for shipment to Tesla’s Fremont Materials Laboratory.
• Zhao Chen told Su Wantang to attend the investor meeting in three days and planned to use Tesla’s pending tests to strengthen Green Energy Technology’s negotiating position.

Zhou Bingcheng demanded an eight-billion post-money valuation for Green Energy Technology, while strategic investors argued that its pilot-stage production carried too much risk and raised their offer to six billion. Zhao Chen remained silent as Vice President Zheng turned his attention to him, recognizing that Zhou’s confidence came from the person standing behind him.

• Zhou Bingcheng met with Dening Times, Bidiya, and two state-owned enterprise funds to negotiate Green Energy Technology’s Series B financing.
• Zhou Bingcheng raised the company’s asking valuation from five billion to eight billion, citing its pilot-test results and future mass-production value.
• Vice President Zheng and Director He warned that scaling up from a pilot line posed major risks and said five billion already accounted for them.
• Vice President Zheng raised the strategic investors’ offer to six billion, but Zhou Bingcheng rejected it as insufficient.
• Vice President Zheng noticed Zhou Bingcheng’s brief confirming glances toward Zhao Chen and turned his full attention to him.

During Green Energy Technology’s Series B negotiations, Zhao Chen backed Zhou Bingcheng’s eight-billion valuation and offered for Henglong Capital to fund the round itself. The industrial investors insisted that their channels justified a six-billion ceiling and threatened to suspend their investment, leaving the negotiations unresolved.

• Zhao Chen told Zhou Bingcheng that Henglong would accept Green Energy Technology’s valuation or cover the round in full and lead the Series B.
• Zhou Bingcheng defended the eight-billion valuation as supported by the company’s technical data and testing report, and said Green Energy Technology had other options.
• Deputy General Manager Zheng argued that the company needed industrial channels and application scenarios to commercialize its technology, then reaffirmed the industrial investors’ six-billion offer.
• Director He said Bidiya’s Investment Committee would not approve a valuation above six billion.
• Deputy General Manager Zheng warned that CATL would put the investment on hold unless Green Energy Technology accepted six billion.

Zhao Chen rejected the industrial investors’ six-billion valuation cap and said Henglong would fund Green Energy Technology’s entire twenty-percent stake at its requested eight-billion valuation. Deputy General Manager Zheng warned that refusing six billion would permanently shut the company out of key supply chains, and the investors began leaving as Zhao Chen turned to Chen Xi.

• Zhao Chen argued that Green Energy Technology’s performance data justified its valuation and that industrial channels amplified, but did not define, its technology’s worth.
• Zhao Chen said Henglong would cover any funding industrial investors declined and accept Green Energy Technology’s eight-billion valuation.
• Deputy General Manager Zheng warned that industrial products needed downstream integration and that Dening Times could exclude Green Energy Technology from future supply chains if it rejected the six-billion valuation.
• Director He confirmed that Bidiya’s investment was also capped at a six-billion valuation.
• Deputy General Manager Zheng and the other industrial investors rose to leave, and Zhao Chen turned to Chen Xi before they had exited the meeting room.

Zhao Chen used Henglong Capital’s supposed plan to buy Dening Times shares and seek a board seat to unsettle Deputy General Manager Zheng during negotiations over Green Energy Technology. After leaving, Zhao Chen told Chen Xi the move was a bluff for now and aimed to make Zheng reconsider Industrial Capital’s leverage.

• Chen Xi claimed Henglong Capital had begun buying Dening Times shares and would seek a board seat at next year’s shareholders’ meeting.
• Zhao Chen told Deputy General Manager Zheng that Green Energy Technology’s technology mattered more than Industrial Capital’s channels and defended the company’s valuation.
• Zhao Chen left the meeting after telling Zheng to respect Green Energy Technology’s founder and the people behind its technology.
• In the car, Zhao Chen told Chen Xi Henglong Capital could not afford to build a stake in Dening Times yet and that he had wanted to make Zheng uneasy.
• Su Wantang predicted Zheng would investigate whether Henglong had bought shares, and Zhao Chen said the uncertainty would make him reassess his leverage.

Green Energy Technology’s industrial investors raised their offer to a post-money valuation of seven billion, but Zhao Chen announced that Henglong would exercise its follow-on rights and invest enough to preserve its forty-percent stake. Deputy General Manager Zheng warned Zhou Bingcheng that this would leave the industrial investors with too little ownership to provide meaningful supply-chain support, and Zhou was left facing a difficult choice.

• Deputy General Manager Zheng said the industrial investors had verified Green Energy Technology’s pilot data and offered 1.4 billion for a twenty-percent stake at a seven-billion post-money valuation.
• Zhao Chen said Henglong considered the valuation too low and would exercise its follow-on investment rights in full.
• Chen Xi calculated that Henglong would invest 560 million to retain forty percent, leaving the four industrial investors with a combined twelve percent.
• Deputy General Manager Zheng warned that Dening Times would treat a stake below five percent as a financial investment and withhold supply-chain access and other strategic resources.
• Deputy General Manager Zheng asked Zhou Bingcheng whether he would trade industrial support for Henglong’s additional ownership, and Zhou fell silent.

Zhou Bingcheng proposed that Henglong reduce its post-financing stake to thirty-five percent so the four industrial investors could hold seventeen percent combined, and they accepted at a seven-billion valuation subject to risk-control clauses. Zhao Chen hesitated to agree because Tesla’s test results could raise Green Energy Technology’s value, then received a call from Fremont.

• Zhou Bingcheng proposed that Henglong give up five percentage points, raising the industrial investors’ combined stake from twelve percent to seventeen percent while keeping Henglong the largest shareholder.
• Deputy General Manager Zheng, Director He, and the central enterprise representatives agreed to the proposed ownership structure on condition that Henglong’s board seats, concert-party status, and veto rights were limited in the investment agreement.
• The industrial investors agreed to participate at a seven-billion post-money valuation, and Zhou Bingcheng said the legal teams would work out the risk-control provisions.
• Zhao Chen considered waiting for Tesla’s test results before locking in the financing terms, since a positive result could make the technology worth far more.
• Zhao Chen received a call from a United States number with a Fremont area code and stood to answer it.

Tesla Materials Laboratory independently confirmed that Green Energy Technology’s test results were even better than the company had reported, prompting Musk to offer a personal investment at a valuation of up to 1.5 billion US dollars. Zhao Chen shared the report and offer with Chen Xi and Su Wantang, leaving the three to consider the implications for the funding round.

• Musk told Zhao Chen that Tesla Materials Laboratory’s tests confirmed the reported energy storage density, cycle life, and degradation results, with several measurements slightly better than expected.
• Musk offered to co-invest for a one-to-two-percent stake at a valuation of up to 1.5 billion US dollars and requested a fast track for supply-chain validation.
• Zhao Chen received Tesla’s official testing report and agreed to handle the valuation and investment terms on Musk’s behalf.
• Zhao Chen called Chen Xi and Su Wantang out of the meeting room and showed them Musk’s report and investment offer.
• Chen Xi studied Musk’s message while Su Wantang looked from the screen to Zhao Chen.