Following the departure of now-former NVIDIA CEO, Jensen Huang, a new report by The WSJ has emerged alleging that NVIDIA artificially inflated the ongoing GPU and memory shortage by investing in AI startups that would go on to buy NVIDIA GPUs and build data centers. The reason behind this was to maintain the perception of ongoing high demand and to move an oversupply of semiconductors from TSMC.
The situation described in the report saw NVIDIA on the hook for an "avalanche" of GPUs from TSMC, for which it would have no immediate buyers. Part of the issue highlighted by Kress was also that these small-scale cloud providers NVIDIA was investing in could not afford to buy NVIDIA GPUs, meaning they, too, could be a financial dead end
During the meeting, he (Jensen) tore into the woman who is now taking over for him as Nvidia CEO. Colette Kress was “a deer in the headlights,” Huang said. As our reporting shows, he described her as a “reporting CFO” who couldn’t help him define strategy as an “avalanche” of chip-supply commitments loomed.
#WhoWillSucceedJensenHuangatNvidia?
The situation described in the report saw NVIDIA on the hook for an "avalanche" of GPUs from TSMC, for which it would have no immediate buyers. Part of the issue highlighted by Kress was also that these small-scale cloud providers NVIDIA was investing in could not afford to buy NVIDIA GPUs, meaning they, too, could be a financial dead end
During the meeting, he (Jensen) tore into the woman who is now taking over for him as Nvidia CEO. Colette Kress was “a deer in the headlights,” Huang said. As our reporting shows, he described her as a “reporting CFO” who couldn’t help him define strategy as an “avalanche” of chip-supply commitments loomed.
#WhoWillSucceedJensenHuangatNvidia?