Stratechery Nvidia's Integration Dreams
Sep 15, 2020
Jensen Huang, Co-founder and CEO of NVIDIA, dives into the company's journey from 3D graphics innovation to a powerhouse in AI and machine learning. He discusses NVIDIA's significant acquisition of ARM and its potential to revolutionize the tech landscape. Huang also addresses the challenges of balancing competitive dynamics while maintaining high margins, and the strategic implications of moving from a licensing model to ownership. The conversation highlights the transformational impact of these decisions on NVIDIA's future and the semiconductor industry.
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Apple's PA Semi Acquisition
- In 2008, Apple acquired PA Semi for $278 million, a deal that proved incredibly valuable.
- This acquisition laid the foundation for Apple's A-series chips, powering iPhones, iPads, and later, Macs.
NVIDIA's ARM Acquisition
- NVIDIA's acquisition of ARM for $40 billion is the biggest chip deal in history.
- SoftBank's sale of ARM represents a poor return, while NVIDIA gains a company that was its market cap peer just four years prior.
NVIDIA's Graphics Focus
- NVIDIA, a fabless company, focuses on graphics and has consistently led the industry with its GeForce line.
- Their GeForce 3, with the first pixel shader, revolutionized graphics processing by allowing software programming and massive scalability.