Nvidia is experiencing significant success in the tech industry, but its CEO, Jensen Huang, believes the company is also at risk. As a key player in the artificial intelligence boom, Nvidia’s processors are in high demand for gaming, data centers, and autonomous vehicles. With a market cap of $1 trillion, it has joined an elite group of companies. However, Huang warned at a recent event that no company is guaranteed survival.
Throughout its 30-year history, Nvidia has faced numerous existential threats. Huang revealed that the company was on the brink of bankruptcy in 1995 after its first chip, the NV1, failed to attract customers. It had to lay off half of its employees before finding success with its third chip, the RIVA 128, a few years later. Despite the challenges, Huang believes it’s important not to become overly stressed about the company’s future.
One of the challenges Nvidia currently faces is the tightening of U.S. rules on tech exports to China. This could potentially result in the loss of billions of dollars for Nvidia as it cancels planned deliveries to Chinese companies. Huang acknowledges the restriction as a capability limitation and emphasizes the importance of complying with regulations while offering competitive products.
While Nvidia has surpassed expectations in recent quarters, analysts warn of increasing competition from rivals like AMD. Huang acknowledges the potential for intensified competition and the need to stay alert and do their best. He references the business books by former Intel CEO Andrew Grove, particularly “Only the Paranoid Survive,” which emphasizes the importance of recognizing and addressing potential threats.
Huang concludes that being aware of the company’s potential peril is better than being overly optimistic or pessimistic. He believes that maintaining a balance between aspiration and desperation is crucial for success in the ever-changing tech industry.
This story was originally featured on Fortune.com
