Commentary: Jensen Huang Is bigger than Nvidia – and it’s a problem

Over the last three years, it has offered US$300 billion in financial support to customers, in addition to investing billions into startups including neoclouds, or data centre operators that lease out computing power to AI labs. 

Despite having only a 3.4 per cent stake, Huang is very much the boss and the architect of Nvidia’s corporate strategies. He has no heir apparent and has created an informal organisation structure whereby his direct reports – as many as 60, according to Bernstein Research – are tasked with rapidly implementing his decisions. 

Will Nvidia’s money keep on flowing now that the central banker of AI is in a bit of trouble himself? 

BAD TIMING FOR DATA CENTRES

This is bad timing for neoclouds. As the likes of CoreWeave are hit with skyrocketing borrowing costs and financing channels close, they naturally look to Nvidia for a lifeline. 

Australia’s Firmus Grid, for instance, is reportedly in talks with the company for follow-on venture investments after pulling a much-anticipated initial public offering in Sydney. Deal negotiations may well be put on hold or scrapped altogether.