Jensen Huang, the co-founder of Nvidia, is facing anxiety and preparing his company for the future to avoid the fate of former tech giants Cisco and Sun Microsystems. Despite Nvidia’s success in developing red-hot chips that are driving the AI boom, Huang is wary of potential missteps that could lead to a downfall.
The rise and fall of companies like Cisco and Sun serve as cautionary tales for Huang. Cisco, known for its networking hardware, saw its stock price plummet by 90% after the dot-com bubble burst in the early 2000s. Similarly, Sun Microsystems, with a peak market capitalization of $200 billion, failed to pivot into the software space and was later acquired by Oracle for a fraction of that amount.
Huang is taking steps to diversify Nvidia’s business beyond chips by expanding into cloud server rental and software services. One example is Nvidia AI Enterprise, an operating system that trains AI, which could help the company avoid the fate of its predecessors.
As Huang navigates the challenges of leading Nvidia, he is mindful of the need to adapt and innovate to stay ahead in the rapidly evolving tech industry. By learning from the mistakes of past tech giants, Huang hopes to secure a lasting legacy for Nvidia and continue its success in the future.
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https://www.businessinsider.com/jensen-huang-nvidia-history-demise-cisco-sun-microsystems-2024-6