In this N=1 case study, nVIDIA, for better or worse, is the leader of the GPU / AI marketAlways be wary of over-interpreting N=1 case studies. You can't tell if they succeeded because of what's being highlighted, or in spite of it. Nor, how certain things they did were counterbalanced or facilitated by other things.
The many bridges burnt has been a consistent thing with nVIDIA. Many companies and people within the Tech industry aren't fond of nVIDIA's behavior. The console market has a tendency to reflect this. Many companies are (One and Done) when dealing with nVIDIA.Or, perhaps because they just didn't do a very good job of competing, there. Their first 5+ years of trying to play in that market were a comedy of errors, during which many bridges were burnt. Towards the end, they sunk way too many resources in designing their own CPU cores, which I'm not sure ever delivered competitive performance. The only thing they really had going for them were their iGPUs.
I don't expect Jensen Huang himself to know all the details that his numerous engineers are doing. He has to trust his employees to some degree and trust that they're using good data for their decision making.Yeah, just ask their chip designers how much they rely on intuition. I don't buy it. I don't know how much of this is misdirection vs. Huang actually not knowing how their architects and design engineers do their jobs, but I can pretty much guarantee you they model everything and rely on data for the multitude of their decisions.
Actually, his management style resembles the OODA Loop IMO.What I'd say stands out for me is their ability to learn and adapt. That, and the foresight behind pushing CUDA into educational institutions and investing big in AI were the real reasons for their current success. Not the management style, IMO.
Don't forget that they bought a large player in datacenter networking and they build their own DGX systems. I'm sure a chunk of those people also work in robotics & self-driving.Head Count at the Big 3 Tech Companies (Intel, AMD, nVIDIA):
That's ALOT of head-count for nVIDIA just for Graphics & AI
But all those other divisions are small potatoes compared to their core 2-businesses.Don't forget that they bought a large player in datacenter networking and they build their own DGX systems. I'm sure a chunk of those people also work in robotics & self-driving.
The core AI investment feeds all 3 businesses, really. The way people might be spread across the organization probably better reflects the future value of those businesses, more than the current revenue.But all those other divisions are small potatoes compared to their core 2-businesses.
DataCenter & Gaming.
Everything else falls by the wayside in comparison to the big 2 drivers.
We never talk about marketshare in our company, and the reason for that is because:
why are you talking about I have 23% of MarketShare, and they have 27% MarketShare.
Why are you fighting people for MarketShare?
Because the whole concept of MarketShare says that there is a whole bunch of other people who are doing the same thing.
If they are doing the same thing, why are we doing it?
Why am I squandering the lives of these incredibly talented people to go do something that has been done.
Unless we enjoy the competition, which I tend not to.
So we tend not to go fight people for marketshare, fight people over markets that are comoditized.
Given how Jensen has stated that he doesn't want to do "Commoditized Work" and is willing to leave sectors of business if it becomes "Too Commoditized", I wonder how much attachment he has to each of those other sectors.The core AI investment feeds all 3 businesses, really. The way people might be spread across the organization probably better reflects the future value of those businesses, more than the current revenue.
Those really don't fit the definition of commodities. A commodity isn't defined by how many people are competing in the market, but rather by being something where you're basically reduced to competing on price, because the products are otherwise so indistinguishable and interchangeable. That means opportunities to add value are also extremely limited. I get why he doesn't want to be in a low-margin business with few opportunities for differentiation. Totally makes sense.Given how Jensen has stated that he doesn't want to do "Commoditized Work" and is willing to leave sectors of business if it becomes "Too Commoditized", I wonder how much attachment he has to each of those other sectors.
There are plenty of people/competitors in:
- DataCenter & Networking
- Self Driving.
If the hardware gets commoditized (which doesn't seem likely to happen any time soon), I guess they'd just follow the value chain. They're investing quite a lot in the AI application domain, like self-driving and robotics, but also lots of other things.So if AI becomes to "Commoditized", what will he do?
Making hardware? None at Nvidia's level. Some are successful in their own niche, but most are just wannabees. The AI hardware industry will likely consolidate a lot, over the next couple years. Investors don't have unlimited patience, and if you can't make a go of it in the current climate, then there's probably not much hope for you.It's not like there are shortages of AI companies right now, there are literally hundreds around the world.
Eh, I've heard that people at Tesla and SpaceX have found it very productive to have Elon being distracted by Twitter, over the past year. That's not a very strong endorsement of Elon's management style... nor is Twitter's financial performance.I think Elon Musk is pretty much the same, maybe he took a page or two from Huang, or maybe it's just how modern management should be
Hi Keng…I worked for Mubadala in Abu Dhabi and spend 14-years as an expat in the UAE including nearby Dubai! Mubadala is owned by Sheikh Mohamed bin Zayed, the current ruler of Abu Dhabi and President of the United Arab Emirates and chairman of the company. Sheik Mohamed also owns among other things the ‘Global Foundries’ with 14,000 employee’s now manufacturing chips for approximately 7-percent of the semiconductor industry. He would frequently visit our (his) major Abu Dhabi real estate properties including the US$1.6bn Cleveland Clinic located on Al Maryah Island. I gotten much unrestricted access to talking with him directly with hands-on discussions and onsite conditions compared to when I worked in NYC and Boston as a corporate SVP, where I would spend approximately 85% plus of my time writing reports and memos . Totally contrary while on the ground in the UAE, Kuala Lumpur and even Singapore. In those days writing no more than a few hundred memos over all during my many expat years. Face to face meetings, walks and relationships always maintained to be a big deal. Actually the only deal! That is also a big reason that specifically U.S executives once having worked overseas for any length have a exceedingly difficult time in ever returning to the island of the U.S and its way of its business life and how they are regarded. (Picture on the job on Al Maryah Island, Abu Dhabi.I think Elon Musk is pretty much the same, maybe he took a page or two from Huang, or maybe it's just how modern management should be...
Do you have a source on that, or are you just going by this vaunted intuition?People with fancy degrees understand very little about what they know in actual practice. Successful people usually don't follow a rule book. Basic rules yes. But anyone in daily life has those.
Intuition certainly comes into play when you don't have a rigid system. Intuition plays off of wisdom gathered over time. Sure, other information is factored in but making the final decision sometimes comes down "how do we feel about doing this?".
Sure, he had visions of what might be possible and pursued some of those. However, it's a mistake to look backwards and assume the only path to the present was to repeat all the decisions of the past, or that different decisions wouldn't have yielded an even better outcome or earlier success. Nvidia was flirting with disaster, about 10 to 15 years ago. They made some costly mistakes and misjudgements. For a time, it looked like the company might be circling the drain.Jensen, though had a vision a long time ago about what NVIDIA is tapping into and leading in now. Nothing comes out of a vacuum. Jensen never claimed that in this interview.
I'll admit that I listen to him speak and he just doesn't sound very smart, to me. That's not to say he's not shrewd and perhaps he indeed has a relatively good intuition. Maybe relying on it has truly worked out, for him. It's just not a very reliable strategy, IMO.Seems many here just want to criticize and find fault. And most times those people either are jealous or never look in the mirror and see that big piece of wood in their own eye.
It's funny that you assume anyone's assessment of Jensen has anything to do with Nvidia. I own Nvidia products. I know people who work there. I'm glad for their success.NVIDIA right now is winning. Live with it. Learn from it.