For about a quarter century, Nvidia has been leading the revolution in computer graphics, becoming a beloved brand by gamers along the way.
Nvidia dominates the market for graphics processing units (GPUs), which it entered in 1999 with the GeForce 256. Gaming brought in over $9 billion in revenue for Nvidia last year despite a recent downturn.
But Nvidia’s latest earnings beat points to a new phenomenon in the GPU business. The technology is now at the center of the boom in artificial intelligence.
“We had the good wisdom to go put the whole company behind it,” CEO Jensen Huang told CNBC in an interview last month. “We saw early on, about a decade or so ago, that this way of doing software could change everything. And we changed the company from the bottom all the way to the top and sideways. Every chip that we made was focused on artificial intelligence.”
As the engine behind large language models (LLMs) like ChatGPT, Nvidia is finally reaping rewards for its early investment in AI. That’s helped to cushion the blow from broader semiconductor industry struggles tied to U.S.-China trade tensions and a global chip shortage.
Not that Nvidia is immune to geopolitical concerns. In October, the U.S. introduced sweeping new rules that banned exports of leading-edge AI chips to China. Nvidia counts on China for about one-quarter of its revenue, including sales of its popular AI chip, the A100.
“It was a turbulent month or so as the company went upside down to reengineer all of our products so that it’s compliant with the regulation and yet still be able to serve the commercial customers that we have in China,” Huang said. “We’re able to serve our customers in China with the regulated parts, and delightfully support them.”
AI will be a major focus of Nvidia’s annual GTC developer conference taking place from March 20-23. Ahead of the conference, CNBC sat down with Huang at Nvidia’s headquarters in Santa Clara, California, to discuss the company’s role at the heart of the explosion in generative AI.
“We just believed that someday something new would happen, and the rest of it requires some serendipity,” Huang said, when asked whether Nvidia’s fortunes are the result of luck or prescience. “It wasn’t foresight. The foresight was accelerated computing.”
GPUs are Nvidia’s primary business, accounting for more than 80% of revenue. Typically sold as cards that plug into a PC’s motherboard, they add computing power to central processing units (CPUs) built by companies like AMD and Intel.
Nvidia Founder and CEO Jensen Huang shows CNBC’s Katie Tarasov a Hopper H100 SXM module in Santa Clara, CA, on February 9, 2023.
Andrew Evers
“It’s very easy to use their products and add more computing capacity,” said Vivek Arya, semiconductor analyst for Bank of America Securities. “Computing capacity is basically the currency of the valley right now.”
Huang showed us the company’s next-generation system called H100, which has already started to ship. The H stands for Hopper.
“What makes Hopper really amazing is this new type of processing called transformer engine,” Huang said, while holding a 50-pound server board. “The transformer engine is the T of GPT, generative pre-trained transformer. This is the world’s first computer designed to process transformers at enormous scale. So large language models are going to be much, much faster and much more cost effective.”
Huang said he “hand-delivered” to ChatGPT maker OpenAI “the world’s very first AI supercomputer.”
Not afraid to bet it all
Today, Nvidia is among the world’s 10 most valuable tech companies, with a market cap of close to $600 billion. It has 26,000 employees and a newly built polygon-themed headquarters. It’s also one of the few Silicon Valley giants with a founder of 30 years still at the helm.
Huang, 60, immigrated to the U.S. from Taiwan as a kid and studied engineering at Oregon State University and Stanford. In the early 1990s, Huang and fellow engineers Chris Malachowsky and Curtis Priem used to meet at a Denny’s and talk about dreams of enabling PCs with 3D graphics.
The trio launched Nvidia out of a condo in Fremont, California, in 1993. The name was inspired by NV for “next version” and Invidia, the Latin word for envy. They hoped to speed up computing so much that everyone would be green with envy — so they chose the envious green eye as the company logo.
Nvidia founders Curtis Priem, Jensen Huang and Chris Malachowsky pose at the company’s Santa Clara, California, headquarters in 2020.
Nvidia
“They were one among tens of GPU makers at that time,” Arya said. “They are the only ones, them and AMD actually, who really survived because Nvidia worked very well with the software community, with the developers.”
Huang’s ambitions and preference for impossible-seeming ventures have pushed the company to the brink of bankruptcy a handful of times.
“Every company makes mistakes and I make a lot of them,” said Huang, who was one of Time magazine’s most influential people in 2021. “Some of them put the company in peril, especially in the beginning, because we were small and we’re up against very, very large companies and we’re trying to invent this brand-new technology.”
In the early 2010s, for example, Nvidia made an unsuccessful move into smartphones with its Tegra line of processors. The company then exited the space.
In 1999, after laying off the majority of its workforce, Nvidia released what it claims was the world’s first official GPU, the GeForce 256. It was the first programmable graphics card that allowed custom shading and lighting effects. By 2000, Nvidia was the exclusive graphics provider for Microsoft’s first Xbox. In 2006, the company made another huge bet, releasing a software toolkit called CUDA.
“For 10 years, Wall Street asked Nvidia, ‘Why are you making this investment? No one’s using it.’ And they valued it at $0 in our market cap,” said Bryan Catanzaro, vice president of applied deep learning research at Nvidia. He was one of the only employees working on AI when he joined Nvidia in 2008. Now, the company has thousands of staffers working in the space.
“It wasn’t until around 2016, 10 years after CUDA came out, that all of a sudden people understood this is a dramatically different way of writing computer programs,” Catanzaro said. “It has transformational speedups that then yield breakthrough results in artificial intelligence.”
Although AI is growing rapidly, gaming remains Nvidia’s primary business. In 2018, the company used its AI expertise to make its next big leap in graphics. The company introduced GeForce RTX based on what it had learned in AI.
“In order for us to take computer graphics and video games to the next level, we had to reinvent and disrupt ourselves, change literally what we invented altogether,” Huang said. “We invented this new way of doing computer graphics, ray tracing, basically simulating the pathways of light and simulate everything with generative AI. And so we compute one pixel and we imagine with AI the other seven.”
‘Boom-or-bust cycle’
From the beginning, Huang was committed to making Nvidia a fabless chip company, or one that designs the product but contracts out production to others that have chip fabrication plants, or fabs. Nvidia keeps capital expenditure down by outsourcing the extraordinary expense of making the chips to Taiwan Semiconductor Manufacturing Company.
Taiwan Semiconductor Manufacturing Company’s U.S. office space in San Jose, CA, in 2021.
Katie Tarasov
Investors are right to be concerned about that level of dependence on a Taiwanese company. The U.S. passed the CHIPS Act last summer, which sets aside $52 billion to incentivize chip companies to manufacture on U.S. soil.
“The biggest risk is really U.S.-China relations and the potential impact of TSMC. If I’m a shareholder in Nvidia, that’s really the only thing that keeps me up at night,” said C.J. Muse, an analyst at Evercore. “This is not just a Nvidia risk, this is a risk for AMD, for Qualcomm, even for Intel.”
Then there are questions about demand and how many of the new use cases for GPUs will continue to show growth. Nvidia saw a spike in demand when crypto mining took off because GPUs became core to effectively competing in that market. The company even created a simplified GPU just for crypto. But with the cratering of crypto, Nvidia experienced an imbalance in supply and demand.
“That has created problems because crypto mining has been a boom-or-bust cycle,” Arya said. “Gaming cards go out of stock, prices get bid up, and then when the crypto mining boom collapses, then there is a big crash on the gaming side.”
Nvidia caused major sticker shock among some gamers last year by pricing its new 40-series GPUs far higher than the previous generation. Now there’s too much supply and, in the most recent quarter, gaming revenue was down 46% from a year earlier.
Competition is also increasing as more tech giants design their own custom-purpose chips. Tesla and Apple are doing it. So are Amazon and Google.
“The biggest question for them is how do they stay ahead?” Arya said. “Their customers can be their competitors also. Microsoft can try and design these things internally. Amazon and Google are already designing these things internally.”
For his part, Huang says that such competition is good.
“The amount of power that the world needs in the data center will grow,” Huang said. “That’s a real issue for the world. The first thing that we should do is: every data center in the world, however you decide to do it, for the goodness of sustainable computing, accelerate everything you can.”
In the car market, Nvidia is making autonomous-driving technology for Mercedes-Benz and others. Its systems are also used to power robots in Amazon warehouses, and to run simulations to optimize the flow of millions of packages each day.
“We have 700-plus customers who are trying it now, from [the] car industry to logistics warehouses to wind turbine plants,” Huang said. “It represents probably the single greatest container of all of Nvidia’s technology: computer graphics, artificial intelligence, robotics and physics simulation, all into one. And I have great hopes for it.”
Amazon CEO Andy Jassy speaks during an unveiling event in New York on Feb. 26, 2025.
Michael Nagle | Bloomberg | Getty Images
Amazon shareholders rejected a proposal to adopt a policy that would require the company’s CEO and board chair roles to remain separate.
Vote totals disclosed in a filing Thursday show about 82% of shareholders rejected the proposal. The independent proposal was submitted alongside seven others at Amazon’s annual meeting on Wednesday. Each of the independent proposals were rejected.
Amazon split the roles of CEO and board chair when founder Jeff Bezos turned the helm over to Andy Jassy in 2021. As part of the transition, Bezos retained the title of executive chairman.
The proposal sought to codify that structure within Amazon “like the majority of S&P 500 companies,” advocacy group the Accountability Board wrote in its submission. The group argued that the split structure allows the board to focus on corporate governance and oversight, while the CEO focuses on the company’s business.
“With the positions currently separated, now would be an opportune time to do so,” the proxy states.
Shareholder proposals seeking the separation of board chair and CEO roles have been on the rise in recent years. The number of such proposals increased 113% among Russell 3000 companies in the first half of 2023, the highest level in the past decade, according to the Harvard Law School Forum on Corporate Governance.
Amazon urged shareholders to vote against the proposal, saying the current policy enables the board to determine the right leadership for the company “in light of our specific circumstances at any given time.”
The separation in 2021 came “after careful consideration” of Amazon’s leadership structure and functions, the company wrote in its recommendation.
“In light of our success through these various leadership structures, the board believes that shareholders are better served by the board retaining the ability to adapt to our evolving needs and implement the optimal leadership structure at any given time,” Amazon wrote in the filing.
Security officers block entrance doors after pro-Palestinian protesters attempted to enter the Microsoft Build conference at the Seattle Convention Center Arch building in Seattle, Washington on May 19, 2025.
Jason Redmond | Afp | Getty Images
Microsoft employees are concerned that the company has been blocking Outlook emails containing the words “Palestine,” “Gaza,” “genocide,” “apartheid” and “IOF off Azure,” even if they’re including those terms in an HR complaint, according to screenshots, recordings and documents viewed by CNBC.
Employees said they started noticing the change Wednesday just before noon PST, batch-testing emails with the terms in question and emails without them. Only the ones without such terms appeared in their outboxes, suggesting those containing the terms weren’t received, according to materials viewed by CNBC and three sources familiar with the matter.
The people asked not to be named in order to speak freely.
One employee with the word “apartheid” in their email signature, who spoke on condition of anonymity for fear of retaliation, said they sent a typical work-related email around 11:30 a.m. PST on Wednesday successfully. The person said that just before noon on the same day, their emails wouldn’t go through — ostensibly due to their email signature.
On internal message boards, messages seen by CNBC showed employees asking why their emails with the word “Israel” may go through but not the word “Palestine,” as well as “Gaza” and other terms. Modifications like “P4lestine” did go through, according to their tests.
One employee asked on an internal message board, “Is the company abandoning the inclusivity initiative or is this only targeting Palestinians and their allies?”
The Verge was first to report on the potential email block.
In a message seen by CNBC, Frank Shaw, Microsoft’s chief communications officer, responded to an employee post, writing: “To clarify, emails are not being blocked or censored, unless they are being sent to large numbers of random distribution groups. There can be a small delay and the team is working to make that as short as possible.”
“Over the past couple of days, a number of emails have been sent to tens of thousands of employees across the company and we have taken measures to try and reduce those emails to those that have not opted in,” a Microsoft spokesperson said in a statement.
But employees told CNBC that even when they attempted to send relatively mundane, solely work-related emails to small groups of colleagues, the emails still didn’t go through if they contained those terms.
Another employee who spoke on condition of anonymity said that when they attempted to send a report to HR containing one of the terms in question, they did not receive the auto-response typically confirming receipt until more than 24 hours later. The message also didn’t show up in the online HR portal until more than 24 hours later.
Some emails were delivered after being delayed by seven hours or more, according to the group No Azure for Apartheid. The group suggested manual reviews of such emails were taking place before they were delivered.
Microsoft protests
Microsoft has seen a growing number of protests at recent events over the Israeli military’s use of the company’s AI products. Protesters have also sent emails to the company’s executives outlining their concerns.
At Microsoft’s Build developer conference in Seattle this week, protesters interrupted executives during keynote speeches and sessions.
On Tuesday, protesters interrupted the Microsoft Build session on best AI security practices, singling out Sarah Bird, Microsoft’s head of responsible AI, who was co-hosting the session with Microsoft AI security chief Neta Haiby.
Haiby was formerly a member of the Israel Defense Forces, according to a Tumblr page viewed by CNBC.
“Sarah Bird, you are whitewashing the crimes of Microsoft in Palestine,” Hossam Nasr, an organizer with the group No Azure for Apartheid, said.
Nasr was one of the Microsoft employees terminated last year after planning a vigil for Palestinians killed in Gaza.
Earlier on Tuesday during another Microsoft Build session, an unnamed Palestinian tech worker disrupted a speech by Jay Parikh, Microsoft’s head of CoreAI.
“Jay, you are complicit in the genocide in Gaza,” the tech worker, who did not wish to share their name for fear of retaliation, said. “My people are suffering because of you. How dare you. How dare you talk about AI when my people are suffering. Cut ties with Israel.”
The worker then called to “free Palestine” and said, “No Azure for apartheid,” a nod to the group and its petition.
A demonstrator is removed from the audience as they interrupt a presentation by Microsoft Chairman and CEO Satya Nadella at the Microsoft Build 2025 conference in Seattle, Washington on May 19, 2025.
Jason Redmond | AFP | Getty Images
On Monday, Microsoft software engineer Joe Lopez interrupted CEO Satya Nadella’s keynote speech onstage, saying, “Satya, how about you show them how Microsoft is killing Palestinians? How about you show them how Israeli war crimes are powered by Azure?”
Lopez was later fired, according to a document viewed by CNBC that stated the reason as, “misconduct resulting in the violation of both company policy and our expectations of a respectful workplace.”
The document said Lopez would be ineligible to return to Microsoft as an employee, contractor, or in any other capacity, including an employee of a Microsoft partner, customer or other third party.
At Microsoft’s 50th anniversary event last month, two Microsoft software engineers publicly protested the use of the company’s AI by the Israeli military during executive presentations. The roles of both employees, Ibtihal Aboussad and Vaniya Agrawal, were terminated soon after, according to documents viewed by CNBC.
OpenAI is betting a new “era” of computing will justify the company’s decision to spend billions of dollars on bespoke hardware to go with it, Chief Financial Officer Sarah Friar said.
The artificial intelligence startup, best known for the ChatGPT chatbot, announced plans on Wednesday to buy iPhone designer Jony Ive’s devices startup io for about $6.4 billion. Ive’s company was founded roughly a year ago and doesn’t have a product on the market.
Friar told CNBC on Thursday that any startup as young as io was “hard to value.” But she sees an eventual return on that investment.
“You’re really betting on great people and beyond,” Friar said. “It’s not just about imagining what a new platform could look like — you’ve got to be able to craft it. You’ve got to be able to build it. You’ve got to be able to understand supply chains.”
Friar, who took the CFO job at OpenAI last summer and was formerly CEO of Nextdoor, said new devices will eventually get OpenAI’s technology in the hands of more users, and drive subscription growth and attach rates. ChatGPT last reported 500 million weekly active users, but monthly actives are higher, Friar said.
“When you start thinking about it beyond just a phone, it starts to grab the imagination,” she said. “If we can get people around the world excited to use AI, we have many ways to begin to think of a business model around that. So it could be an ongoing, bigger subscription for ChatGPT.”
Friar’s comments echo others in the tech industry who have said AI hardware could change the face of computing, and threaten the iPhone. Eddy Cue, Apple’s chief of services, said earlier this month that he believes AI devices could replace the iPhone within ten years.
While OpenAI works with Apple on an iPhone and Siri integration, Friar said the company still saw a need to have its own proprietary devices.
“We want to work with many partners. When we single-thread ourselves, we don’t think that drives max innovation,” Friar said. “We continue to work closely with Apple on their device, and we’d love to see more being done with AI — but we also want to keep sparking innovation broadly in the ecosystem.”
Friar hinted at new devices without touchscreens. She declined to give details around what exactly they might look like, pointing to the former Apple team’s secretive culture and “mystique” around products.
“As you birth this new era of AI, there’s going to be new platforms and new substrate,” she said. “We think of tech today as a little bit more around touch. We as humans, we see things, we hear things, we talk. And our models are great at that.”