Nvidia CEO Jensen Huang says his AI giant is ‘always at risk’ despite $1.1 trillion market cap: ‘We feel it’

Nvidia Billionaire CEO Jensen Huang said the company is also in danger.

The semiconductor maker’s processors are used in gaming, data centers and self-driving cars. key role Amid the artificial intelligence boom that’s revitalizing Silicon Valley, tech giants are rushing to acquire its expensive artificial intelligence chips.This year join in A select group of companies with market capitalization greater than $1 trillion.

But Huang warned in Harvard Business Review’s “The Future of Business” on Thursday that “no company is guaranteed to survive.” event.

Nvidia has faced several existential threats in its 30-year history, which helps explain why Nvidia recently told this acquired The podcaster said “no one in their right mind” would start a company. In 1995, for example, the company nearly went bankrupt after its first chip, the NV1, failed to attract customers. Before the success of its third chip, the company had to lay off half its staff. A few years later, the RIVA 128 chip came to the rescue.

“Our advantage is that we built this company from the ground up and we almost went out of business a couple of times, that’s not an exaggeration,” Huang said this week. observer report“We don’t have to pretend that companies are always at risk. yes Always in danger, we can feel it. “

But Huang thinks it’s important to avoid getting too stressed about it.

“I think companies that live between desire and desperation are far better off than either [being] Always optimistic or always pessimistic,” he noted.

One of the challenges now facing the Santa Clara, Calif.-based chipmaker is tightening U.S. rules on technology exports to China.This could lead to Nvidia billions of dollars lost Plans for deliveries to Chinese companies were cancelled.

“This limit is a capacity limit,” Huang said. “It’s not an absolute limit… The first thing we have to do is comply with regulations, understand what the limits are, and do our best to provide products that meet the requirements. “Still competitive. “

But trying to sell less capable chips in China leaves Nvidia more vulnerable to competition from local rivals. “It’s not easy, competitors move very quickly,” Huang said. “Just like anything else, you have to stay alert and do your best.” Yes. “

Meanwhile, even though Nvidia has beaten expectations in recent quarters, many analysts warn that competition will intensify From rival AMD Others are sure to intensify, including David Trainer, head of research firm New Constructs.

“The rest of the world is not going to just roll over and let them dominate artificial intelligence,” Traynor said. wealth in august“They face the same curse Tesla“Like Tesla, Nvidia benefits from being first to market. But after Tesla makes a profit, a slew of competitors enter the EV space, cutting into its profits and slowing sales. The same thing will happen to Nvidia On the body.”

Huang told acquired He’s read his predecessor’s business books Intel Chief executive Andrew Grove said they were “very good”. Only the paranoid survive.

Mr. Huang seemed to have kept this in mind.

“If you don’t think you’re in danger,” he said this week, “that’s probably because you have your head in the sand.”

This story was originally published on wealth network

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