Nvidia, one of the largest semiconductor manufacturers, plays a crucial role in the thriving artificial intelligence (AI) industry. Its processors are utilized in gaming, data centers, and autonomous vehicles, contributing to the resurgence of Silicon Valley. As tech giants scramble […]
Nvidia, one of the largest semiconductor manufacturers, plays a crucial role in the thriving artificial intelligence (AI) industry. Its processors are utilized in gaming, data centers, and autonomous vehicles, contributing to the resurgence of Silicon Valley. As tech giants scramble to acquire Nvidia’s expensive AI chips, the company has achieved a market value of over one trillion dollars.
However, despite its success and promising future, Jensen Huang, CEO of Nvidia, issued a warning about the possibility of the company’s downfall during a Harvard Business Review conference on the future of business. Huang emphasized that “there is no company guaranteed survival.” This is not the first time Nvidia has faced an existential threat. Back in 1995, the company teetered on the brink of collapse when its first chip, NV1, failed to attract customers. To survive, Nvidia had to lay off half of its employees until the success of their third chip, RIVA 128, saved the company several years later.
Huang believes that it is crucial to avoid excessive stress about the possibility of failure. He suggests that “the life of a company oscillates between ambition and despair, which is much better than constant optimism or pessimism.” However, Nvidia now confronts another challenge – the tightening of US technology export rules to China. This could result in the loss of billions of dollars for Nvidia, as the company had to cancel planned shipments to Chinese firms.
Furthermore, despite Nvidia’s recent achievements, many analysts warn of increasing competition, particularly from rivals like AMD. David Trainer, the head of research firm New Constructs, believes that “the rest of the world will not simply surrender Nvidia’s dominance in the field of AI.” He compares the situation to Tesla, which initially dominated the electric vehicle market but has seen numerous competitors reduce profit margins and slow down sales.
Jensen Huang has acknowledged reading business books by former Intel executive Andrew Grove, describing them as “really good.” One of those books is “Only the Paranoid Survive.” Huang seems to have taken these words to heart, stating that “if you don’t think you’re in danger, it’s probably because you have your head in the sand.”
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