Jensen Huang Almost Lost Nvidia by Demanding CEO Position in AMD Merger
In a surprising turn of events, a former AMD engineer, Hemant Mohapatra, revealed that AMD almost acquired Nvidia in the mid-2000s. However, the deal ultimately fell through because of Jensen Huang, the current CEO of Nvidia.
Huang's Demand for Control
According to Mohapatra, Huang was adamant about maintaining Nvidia's closed-source approach with its CUDA platform, even in a merger scenario. This ultimately led to his non-negotiable demand: he would only agree to the merger if he became the CEO of the combined company.
AMD's Alternative Move
Hector Ruiz, AMD's CEO at the time, was unwilling to meet this demand. Instead, AMD shifted its focus and successfully acquired ATI, bringing the Radeon graphics card division under its umbrella.
Nvidia's Humble Beginnings
Mohapatra recalls that Nvidia was seen as a relatively small player in the GPU market at the time, primarily attracting hardcore gaming enthusiasts. AMD, on the other hand, considered companies like ARM and Intel as their main rivals.
The Tables Have Turned
Fast forward to today, and Nvidia has grown into a tech behemoth, surpassing both Intel and AMD in market capitalization. This remarkable turnaround highlights the unpredictable nature of the tech industry and the dramatic shifts in power dynamics that can occur over time.
So now that Nvidia has far outstripped the market cap of AMD and Intel, I thought this would be a fun story to tell. I spent 6+yrs @ AMD engg in mid to late 2000s helping design the CPU/APU/GPUs that we see today. Back then it was unimaginable for AMD to beat Intel in market-cap… pic.twitter.com/bYCS5vY0QO
— Hemant Mohapatra (@MohapatraHemant) July 5, 2024
I’ve never met Hemant, and though there are a few things where I have a different opinion, the anecdote about Jensen wanting to be CEO is true. https://t.co/TJjYeGSZvE
— Phil Park (@philparkbot) July 5, 2024
Key Takeaways:
- Jensen Huang's unwavering belief in his vision and his demand for control almost cost him his company.
- AMD's acquisition of ATI instead of Nvidia significantly shaped the landscape of the GPU market.
- Nvidia's journey from a niche player to a tech giant serves as an inspiration and a reminder of the ever-changing dynamics of the technology industry.