NVIDIA CEO Huang Renxun: Even if Rivals Like AMD Are Free, They Can’t Beat NVIDIA

TechCrunch reported on March 11th that recently, Huang Renxun, the founder and CEO of NVIDIA, returned to his alma mater, Stanford University in the United States. During the SIEPR Economic Summit at the Stanford Graduate School of Business, Huang Renxun stated that even if competitors like AMD were to offer their products for free, they still wouldn’t be able to surpass NVIDIA.

When asked, “You produce highly advanced chips. Facing competition that is good enough and much cheaper, such as AMD, is it a threat?”

Huang Renxun explained that our chips are just a part of it. When you look at today’s computers, they are not like ordinary laptops; they are data centers that need to be operated.

So, while people buying and selling chips are considering the chip’s price, those operating data centers are concerned with operational costs. In terms of Total Cost of Ownership (TCO) of data centers, the pricing of NVIDIA GPUs is not crucial; our TCO is much better than that of our competitors.

“Moreover, companies are very aware of the overall cost of ownership, which is essentially NVIDIA’s advantage, such as deployment time, performance, utilization, and flexibility. So even if the chips from competitors were free, they wouldn’t be cheap enough,” stated Huang Renxun.

At the same time, Huang Renxun also mentioned that NVIDIA has more competitors than anyone else on the planet, facing competition not only from rivals but also from customers.