In the past week, June 2024, the Taiwanese public and media have closely followed the actions of NVIDIA CEO Jensen Huang, a 61-year-old entrepreneur. He has gained popularity among the Taiwanese population.
Let’s dive into a story that’s as exciting as any tech saga out there — NVIDIA’s success story.
NVIDIA, a company that’s all about cool tech and graphics, did something pretty amazing.
Imagine being in a race where you’re not just trying to catch up, but actually leapfrog past a giant like Apple in the game of who’s worth more. Sounds like a thrill, right?
Well, NVIDIA did just that. And it’s not just about having the best tech toys.
There’s a lot more to this story — it’s about making smart moves, having big dreams, and the kind of leadership that movies are made of.
So come along as we unpack how NVIDIA pulled off such a stunning win in the tech world.
NVIDIA’s success story
The Santa Clara, California-based technology company has seen its shares soar and outpace Apple in market value.
This has been attributed to its processor technology, which plays a central role in powering OpenAI’s ChatGPT and other applications.
NVIDIA’s valuation topped US$3 trillion on June 5, ranking second in the world after Microsoft.
The Wall Street Journal reported that the company had an unusual past and would have collapsed if it had not been for the kind act of someone who had never worked at NVIDIA. Jensen Huang remembers this experience and is grateful for it to this day.
Every company needs a little luck on its way to success. It also needs to accumulate and gain a lot of popularity and credibility. The more valuable you become, the more you need your customer base.
Jensen Huang has served as CEO of NVIDIA since its inception in 1993. He said that if he had not met noble people who helped him on his way to success, there would be no NVIDIA in the world.
In 1996, NVIDIA was close to bankruptcy as it tried to build its graphics processing units (GPUs) for the Dreamcast console of the Japanese video gaming company SEGA. At a critical juncture, Shoichiro Irimajiri, then SEGA’s U.S. Chief Executive Officer, invested US$5 million in NVIDIA, in spite of its difficulty.
“He is really good,” Huang told The Wall Street Journal. “I was overjoyed.”
Mr. Irimajiri’s actions not only saved NVIDIA at a critical moment, but taught Huang one of the most important and least appreciated lessons in entrepreneurship.
In 2023, in his opening speech at the National Taiwan University, Jensen Huang reflected on that seemingly desperate time, recounting NVIDIA’s rebirth after that initial “humiliating and embarrassing” failure.
Back when NVIDIA received funding from SEGA’s contract, its early risk-taking decisions and major mistakes nearly ruined the opportunity. At the time, NVIDIA had chosen an unconventional approach to create a low-cost chip that was different from the current industry, choosing instead to create “Quadrilateral Image Technology” instead of the “Trilateral Technology” commonly used by other companies.
After a year of research and development, Huang discovered that their strategy was wrong and technically inadequate.
“If we had completed SEGA’s game console, we would have created an inferior technology incompatible with Windows, causing us to seriously fall behind. If we were unable to fulfill our contract, we would have run out of money and gone out of business anyway,” Huang said in his speech.
“Either way,” Huang said, “we’re going to go out of business!”
Huang decided to confess to SEGA and asked them to find another partner. At the same time, he asked SEGA to pay the full amount (as per the contract), or else NVIDIA would go out of business.
What Huang did not expect was that SEGA America’s CEO, Mr. Irimajiri, agreed. Mr. Irimajiri said he trusted Huang and wanted to help him.
Subsequently, Mr. Irimajiri contacted Japan’s head office and proposed a bold idea that SEGA should invest in NVIDIA.
After some difficult negotiations, Mr. Irimajiri helped NVIDIA secure a US$5 million injection of SEGA’s capital.
“That’s all the money we have.” Huang said, “His understanding and generosity gave us six months to survive.”
In 1997, NVIDIA released a breakthrough chip that saved the company. In 1999, NVIDIA went public in the United States.
In 2000, Mr. Irimajiri resigned as president of SEGA and left. In the same year, SEGA sold its NVIDIA stocks for about US$15 million, proving that Mr. Irimajiri’s suggestion to help NVIDIA was correct.
Mr. Irimajiri and Huang had lost touch over the past 20 years. It wasn’t until 2017 that Mr. Irimajiri stumbled upon Mr. Huang’s email address. He decided to send Huang an email letter inviting him or someone from NVIDIA to Japan for a small talk.
Mr. Irimajiri never expected to receive a reply since Huang was already the big boss of a company worth US$117.26 billion at the time. The 84-year-old Mr. Irimajiri runs a personal consulting business in Tokyo. Mr. Irimajiri did receive a quick reply from Huang the next day.
“Dear Mr. Irimajiri, it is a wonderful and happy surprise to receive your letter. The collaboration with SEGA at the beginning of NVIDIA’s founding is also one of the most pleasurable memories of my life,” Huang wrote.
“I’ll be happy to help you,” Huang wrote in his letter, as though he was expressing it to an old friend.
Huang expressed his willingness to do anything for Mr. Irimajiri in acknowledgment and repayment for NVIDIA, receiving the US$5 million in life-saving money it needed from SEGA at the time.
This was thanks in part to the power of friendship, and the US$15 million that SEGA later received in return was certainly a reward in kind, due to the act of unconditional trust and kindness of a benefactor.
Conclusion
NVIDIA’s journey is one for the books.
It’s a mix of being super smart with technology, never giving up no matter how tough things get, and having friends in the right places.
Imagine going from almost losing everything to being top dog, beating a giant like Apple in terms of value. It’s like the ultimate underdog story, but with a tech twist.
This tale isn’t just about the numbers; it’s about what you can achieve with a bit of innovation, loads of determination, and the right kind of teamwork.
NVIDIA’s adventure shows us that even in the big wide world of tech, dreams can come true if you play your cards right.
Here’s hoping this story lights a spark in anyone thinking about their next big idea — go for it; who knows where you might end up!
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