Jensen Huang: Stanford student and

Entrepreneur, co-founder and CEO

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• Jensen Wang is the co-founder of Nvidia, which he founded two years after he graduated
from Stanford with a Master’s Degree in Electrical Engineering.

"Our perspective about the world that we had that is apparently obviously now true. Because
video games is the world's largest digital media industry today

I always believed that you need to understand the reason why your business works, what is the
essence of your business, what makes it work.

"Moore's Law approximately gives you twice the performance every year or two, and so
understanding that the fundamental ingredient of our business improves by a factor of two
every year and simultaneously reduces in cost by a factor of two every year, the question is
what makes a survivable business.

"Which one of you guys are going to go through your marketing courses and the lesson that it
teaches you is ignore your customers? Well, sometimes you have to ignore your customers."

When you're in high tech, when you're in the technology industry, when the technology moves
this fast, if you're not reinventing yourself, you're just slowly dying, unfortunately, at the rate
of Moore's Law, which is the fastest of any rate that we know, right? The compounded rate of

Jensen Huang: Stanford student and Entrepreneur, co-founder and CEO of NVIDIA 1
 Moore's Law is pretty that unbelievable generating a lot of money I know so it's scary, and so
you have to and this is so the question is but we have a product that's generating a lot of
money and it's very successful how do you cannibalize it?"

"There is a theory that if you don't cannibalize it, someone will and surely will be
cannibalized, and so if you want to be a market leader, you have to take the initiative to
cannibalize your own products and have your ideas cannibalize your own ideas."

"Our first chip almost killed the company. It was called GeForce Effects. I don't know if
any of you have ever owned one of those. GeForce Effects is a chip, is a processor that,
you know, it's a baby only a mother can love. I mean, it's we took an enormous chance in
building GeForce Effects, but it almost broke our back. But if it if we didn't build that
ship, I am sure NVIDIA would be dead today. I am absolutely certain we'd be dead. It
was one of the biggest gambles in our history. We had to create instead of a an API, we
had to go to a processor with a language we call it CG and a compiler, so it's kind of like
like a processor. We introduced a new programming paradigm to the world that it never
understood in the beginning, and so it took a lot of evangelism, a lot of marketing, a lot
of education, but CG, inventing CG, took us to unbelievable places and one of the one of
our most important work today."

"VCs don't invest in business plans because business plans are easy to write... they invest in
great people.

Huang's early investment in NVIDIA

Huang invested $200 in NVIDIA for 15-20% ownership.

Huang and two others invested $200 each and received 20% ownership each.

Huang did not finish his business plan before incorporating NVIDIA.

Huang's reputation and past work with successful tech companies helped him secure
funding.

Venture capitalists invest in great people with large visions rather than just business
plans

Jensen Huang: Stanford student and Entrepreneur, co-founder and CEO of NVIDIA 2
 Huang believes in the importance of learning from just about anybody and having the
capacity to do so.

Huang considers himself surrounded by extraordinarily talented executives and

"I truly believe that if you want to be successful, a successful habit is to have the
capacity and the willingness to learn from just about anybody."

Jen-Hsun Huang's advice on focus and dedication

Jen-Hsun Huang advises to have laser beam focus and to do a few things well with
extraordinary intensity.

He explains that he focuses on Nvidia 24/7, from the moment he wakes up to the last
thing he does before sleeping.

He recognizes that focus is essential and that it has helped him build Nvidia to the
company it is today.

"Focus matters if you look at what I do with my time. I wake up in the morning and the
first thing of my time is Nvidia and the last thing I do is Nvidia and I do that 24/7

Every successful thing needs to be torn down at some point and be rebuilt. It is unfortunate
but true, and the reason for that is because the technology either gets good enough, and
therefore you have to reinvent, and sometimes the invention process is disruptive, sometimes
it's in fact destructive, and it could destroy what you have built in the past."

"Just so that there's no ambiguity about this, survival is always important, cash is always
king, and so as the CEO, you're either making money, saving money, or raising money, and
you ought to be doing those three things. That's a simple, it's just stay focused on those three
things, and so when you're during the beginning in the early days, I was raising money all the
time."

"One of the primary roles of a CEO in order to grow the company in order to make Nvidia one
of the most important technology companies in the world and make significant contribution to

Jensen Huang: Stanford student and Entrepreneur, co-founder and CEO of NVIDIA 3
 society, in order to do that, you have to cultivate new leaders so that they can have new ideas
and grow new businesses and run a different geography, run a new different product line."

Money is the only singular reason not to start a company.

Starting companies is a very unlikely probability for success, and if money is the only
reason for doing it, you will likely regret the experience.

You should start a company and build a company because you just believe in your idea,
you are passionate about it, and you want to build something great.

Ideas are a dime a dozen, you have to have a unique perspective that you feel strongly
about, and you're willing to persevere almost any challenge.

"The only reason you want to do it, it just comes along"

Jensen Huang: Stanford student and Entrepreneur, co-founder and CEO of NVIDIA 4