Huang Renxun, Founder and CEO of NVIDIA, Believes Even Free Competitors Cannot Beat the Company

Recently, on March 11th, Huang Renxun returned to his alma mater, Stanford University in the United States. During the SIEPR Economic Summit at Stanford Business School, he expressed that even if rivals like AMD were to offer their products for free, they would still not be able to surpass NVIDIA.

When asked, “You manufacture highly advanced chips, facing potentially good and much cheaper competition, is AMD a threat?”

Huang Renxun explained that our chips are just a part of the equation. When you look at today’s computers, they are no longer ordinary laptops; they are data centers that require operational management.

Therefore, while those involved in purchasing and selling chips consider the chip’s price, those managing data centers focus on operational costs. In terms of the total cost of ownership (TCO) of a data center, the pricing of NVIDIA GPUs is not the primary concern. Our TCO is significantly better than that of our competitors.

“Furthermore, companies are well aware of the overall cost of ownership, which essentially serves as NVIDIA’s advantage, encompassing deployment time, performance, utilization, and flexibility. So even if the competitor’s chips were given away for free, they wouldn’t be cost-effective,” stated Huang Renxun.

At the same time, Huang Renxun emphasized that NVIDIA faces more competitors than anyone else on Earth, not only from industry rivals but also from customers.