The market capitalization of artificial intelligence chip manufacturer Nvidia surpassed US$2 trillion in March.
According to reports, the company doubled its value from US$1 trillion in just 180 days, which is less than half the time it took for tech giants like Apple and Microsoft.
Three friends, Jensen Huang, Chris Malachowsky, and Curtis Priem, got together in a Silicon Valley Denny’s in 1993 to discuss a business idea. Their goal was to develop a chip that allowed computers to display realistic, three-dimensional graphics.
According to earlier reports, Nvidia nearly went out of business because its first product failed because it wasn’t what the market needed or wanted. Conversely, Nvidia’s second chip was “doomed” from the beginning, even as it was being developed for the video game company Sega.
In an unprecedented move, Nvidia was released from its contractual obligations by Sega’s then-CEO Shoichiro Irimajiri, but Nvidia continued to pay them as stipulated in the contract. It was our entire financial holding. And it gave us just enough cash to brace ourselves’, Nvidia CEO Huang stated.
He recited Nvidia’s unofficial motto, “Our company is thirty days from going out of business,” to begin staff presentations for many years. There were other hiccups along the way, like getting subpoenas for alleged antitrust violations and finding itself the target of a class action lawsuit.
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