jen-hsun-huang-net-worth

Jen-Hsun Huang’s Net Worth

Jen-Hsun Huang, founder and CEO of NVIDIA, is the main shareholder with 3.50% of ownership, valued at around $20 billion by 2023. Through its GPUs and A100 Chip, NVIDIA is surfing the AI revolution by powering up massive AI supercomputers used for pre-training large language models; on top of that, tools like ChatGPT have been created.

Early career

With a master’s degree in electric engineering from Stanford University, Huang started his professional career in 1984 at Advanced Micro Devices, Inc. Little is known about his time there, but one of his main duties involved the design and engineering of microprocessors. 

In 1984, Huang moved to the semiconductor design and software engineering company LSI Logic. The company was still in its infancy but had set a record two years prior for the most valuable IPO in history at $153 million.

Huang spent the next eight years climbing the ranks and eventually became the company’s director. But in the same year that Sony asked LSI to build a chip for the PlayStation CPU, he left to start a career as an entrepreneur.

Nvidia Corporation

nvidia-business-model
NVIDIA is a GPU design company, which develops and sells enterprise chips for industries spacing from gaming, data centers, professional visualizations, and autonomous driving. NVIDIA serves major large corporations as enterprise customers, and it uses a platform strategy where it combines its hardware with software tools to enhance its GPUs’ capabilities.

Huang co-founded Nvidia on his 30th birthday in 1993 with former Sun Microsystems employees Curtis Prem and Chris Malachowsky. The founders started the company because they believed that the PC would one day become a consumer device for games and multimedia. 

We observed that video games were simultaneously one of the most computationally challenging problems and would have incredibly high sales volume. Video games was our killer app – a flywheel to reach large markets funding huge R&D to solve massive computational problems”, Huang explained.

Nvidia was founded with just $40,000 between the three founders. 

Competition and vision

When the company entered the market, there were already 24 similar companies in existence. This swelled to over 70 three years later, but by 2006, Nvidia was the only independent company left. 

In a later interview with the BBC, Huang described Nvidia as “the world’s last computer graphics company” that succeeded because “it didn’t matter to us whether people believed in us. We believed in ourselves. We had the courage to follow our own path.

Early Nvidia successes included the NV1 chip for Sega arcade games in 1995 and a collaboration with Microsoft in 1996 that saw it develop the API used to render 3D graphics. In 1999, the company also invented the world’s first GPU to revolutionize computing.

Philanthropy and accolades

Huang pledged to donate $200 million to his alma mater, Oregon State University, to fund the construction of a supercomputing institute.

He also donated $30 million to Stanford University, with that money used to construct the Jen-Hsun Huang School of Engineering Center.

In 2017, Fortune named him Businessperson of the Year and four years later, he became one of Time’s most influential people. Huang also won the Robert N. Noyce Award for his contributions to computer hardware and artificial intelligence. 

Under Huang’s stewardship, Nvidia has moved well beyond video games with its products now the brains of robots and self-driving vehicles, among others.

Key takeaways:

  • Jensen Huang is a billionaire business magnate and electrical engineer who was born in Taiwan and moved to the United States in 1972. Huang is currently the president and CEO of Nvidia Corporation – a company that he also co-founded.
  • With a master’s degree in electric engineering from Stanford University, Huang started his professional career in 1984 at Advanced Micro Devices, Inc. He also worked at the semiconductor design and software engineering company LSI Logic where he became director.
  • Huang co-founded Nvidia in 1993 with former Sun Microsystems employees Curtis Prem and Chris Malachowsky. The founders started the company because they believed PCs would become consumer devices for games and multimedia and thus require tech that could provide advanced graphics.

Connected To NVIDIA

NVIDIA Business Model

nvidia-business-model
NVIDIA is a GPU design company, which develops and sells enterprise chips for industries spacing from gaming, data centers, professional visualizations, and autonomous driving. NVIDIA serves major large corporations as enterprise customers, and it uses a platform strategy where it combines its hardware with software tools to enhance its GPUs’ capabilities.

Who Owns NVIDIA

who-owns-nvidia
The top individual shareholder of NVIDIA is Jen-Hsun Huang, founder, and CEO of the company, with 87,521,722 shares giving him 3.50% ownership. Followed by Mark A. Stevens, venture capitalist and a partner at S-Cubed Capital, who was part of the NVIDIA board in 2008 and previously served as a director from 1993 to 2006, with 6,258,803 shares. Institutional investors comprise The Vanguard Group, Inc, with 196,015,550, owning 7.83%. BlackRock, Inc., with 177,858,484, owns 7.10%. And FMR LLC (Fidelity Institutional Asset Management) with 158,039,922, owning 6.31%.

NVIDIA Revenue

nvidia-revenue
NVIDIA generated almost $27 billion in revenue in 2023, compared to the same revenue value in 2022 and over $16.6 billion in 2021.

NVIDIA Revenue Breakdown

nvidia-revenue-breakdown
NVIDIA generated almost $27 billion in revenue in 2023, of which $15 billion came from computing and networking and $11 billion from graphics. Opposite to 2022, where of $27 billion in revenue, over $15.8 billion came from Graphics and $11 billion from computing and networking. With the explosion of AI, the computing segment has become the main driver of NVIDIA’s growth.

NVIDIA Revenue By Segment

nvidia-revenue-by-segment
NVIDIA generated almost $27 billion in revenue in 2023, of which over $15 billion came from competing & networking and $11.9 billion from graphics. NVIDIA, through its GPU, is powering up the AI supercomputing revolution, which is part of the current AI paradigm.

NVIDIA Profits

nvidia-profitability
NVIDIA generated $4.37 billion in net profits in 2023, compared to over $9.7 billion in profits in 2022, and $4.3 billion in 2021.

NVIDIA Employees

nvidia-rd-employees
In 2023, of 26,196 employees, 19,532 employees were engaged in R&D (74.5% of the total workforce). In 2022, 16,242 NVIDIA employees (72% of the workforce) were involved in R&D.

NVIDIA Revenue Per Employee

nvidia-revenue-per-employee
In 2023, NVIDIA generated $1,029,699 per employee, compared to almost $1.2 million in revenue per employee in 2022.

Connected AI Visual Stories

AI Supercomputer

ai-supercomputer

Transformer

transformer-architecture
The transformer architecture – sometimes referred to as the transformer neural network or transformer model – is an architecture that endeavors to solve sequence-to-sequence tasks while easily handling long-range dependencies.

GPU vs. TPU

GPU-vs-TPU

OpenAI Business Model

how-does-openai-make-money
OpenAI has built the foundational layer of the AI industry. With large generative models like GPT-3 and DALL-E, OpenAI offers API access to businesses that want to develop applications on top of its foundational models while being able to plug these models into their products and customize these models with proprietary data and additional AI features. On the other hand, OpenAI also released ChatGPT, developing around a freemium model. Microsoft also commercializes opener products through its commercial partnership.

OpenAI/Microsoft

openai-microsoft
OpenAI and Microsoft partnered up from a commercial standpoint. The history of the partnership started in 2016 and consolidated in 2019, with Microsoft investing a billion dollars into the partnership. It’s now taking a leap forward, with Microsoft in talks to put $10 billion into this partnership. Microsoft, through OpenAI, is developing its Azure AI Supercomputer while enhancing its Azure Enterprise Platform and integrating OpenAI’s models into its business and consumer products (GitHub, Office, Bing).

Stability AI Business Model

how-does-stability-ai-make-money
Stability AI is the entity behind Stable Diffusion. Stability makes money from our AI products and from providing AI consulting services to businesses. Stability AI monetizes Stable Diffusion via DreamStudio’s APIs. While it also releases it open-source for anyone to download and use. Stability AI also makes money via enterprise services, where its core development team offers the chance to enterprise customers to service, scale, and customize Stable Diffusion or other large generative models to their needs.

Stability AI Ecosystem

stability-ai-ecosystem

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