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Friday, Apr 25, 2025

Nvidia's founder refutes any participation in discussions regarding the acquisition of Intel.

Jensen Huang Addresses Allegations Regarding Nvidia's Possible Involvement in Acquiring Intel's Chip Manufacturing Division
Jensen Huang, the founder and CEO of Nvidia, dismissed reports at the company’s annual developer conference that Nvidia was involved in negotiations to gain control of Intel's chip manufacturing. Huang labeled the reports as false, stating, "If there’s a party, nobody invited me."

Last week, Reuters reported that Taiwanese semiconductor manufacturer TSMC was negotiating with Nvidia, along with AMD and Broadcom, to establish a joint venture aimed at taking control of Intel’s chip production due to the company’s ongoing operational difficulties.

In response, Huang categorically rejected the claims, asserting, "I don’t know where this came from. No one invited me to the party. Maybe others are involved, but not me."

Nvidia's Position on Export Restrictions for AI Chips
Huang also discussed the recent export restrictions on AI chips imposed by the Biden administration during its final days in office. These restrictions classify countries into three tiers.

Countries in the first tier, including the United States and 17 other nations such as Belgium, Canada, Australia, Denmark, France, Germany, and the UK, will face no export restrictions. In contrast, third-tier countries, like China, Russia, Iran, and North Korea, will face a total ban on AI chip exports.

150 countries, including Poland, Mexico, Israel, Singapore, and the United Arab Emirates, fall into the second tier, where AI chips can still be exported but only under specific computing power limits.

When queried about these export controls, Huang stated, "In the long term, I believe AI is a technology needed by every country, every industry, and every company.

AI has already become mainstream. We discuss AI as if it’s some magical technology, but it’s simply software. Every country will be able to run software. If feasible, we’d love to provide every country with American technology and standards. It’s beneficial for countries to access the computing power they require, and it’s also good for the United States."

Minimal Impact of Trump's Tariffs on Nvidia
Regarding the impact of tariffs from the Trump administration on Nvidia, Huang estimated that the effect would be negligible.

"We have a highly flexible supply network, not only in Taiwan, Mexico, or Vietnam, but in many other locations. It’s a complicated issue depending on where the tariffs are imposed. Thus, in the short term, we do not anticipate any significant influence on our operations. In the long run, we aim to preserve our flexibility through local production. If we incorporate local production into our supply chain by year’s end, we will be in a strong position. We possess the capacity to produce a substantial amount in the U.S. Not everything, but a lot."

Nvidia’s Approach to Chip Export Restrictions for China
Huang also elaborated on Nvidia's strategy regarding the chip export restrictions to China implemented by the Biden administration in the autumn of 2023. He emphasized, "We are fundamentally committed to operating our business, adhering to the law, and striving to serve our customers. As the world grows more complex, we must comply with regulations and do our utmost to cater to customers and markets. 50% of the world’s AI researchers are from China, and the next highest does not even come close. Therefore, it is logical for there to be a substantial contribution to AI research from China. Every AI lab in the U.S. has many outstanding Chinese researchers, without exception. China produces a wealth of excellent computer scientists, so please continue to do so."

Energy Demands for AI Data Centers
Lastly, Huang tackled the significant energy requirements associated with building data centers for AI model development. He argued that the discussion surrounding energy consumption in AI was incorrectly framed. "AI represents a new manufacturing industry, and manufacturing necessitates energy. The real question is whether a country wishes to produce AI. If the answer is yes, energy is essential. Among all energy-consuming activities, which should take priority for production? Cement? Steel? Agriculture? AI? That’s a straightforward question."

Additional Insights on Nvidia’s Strategy and Market Position
Under Jensen Huang's guidance, Nvidia has solidified its status as a leader in the AI and GPU industries. The company is recognized for its groundbreaking work in AI, deep learning, and high-performance computing. Huang's comments during the conference illustrate the company’s strategy in addressing global challenges, such as navigating international relations, fostering technological innovation, and ensuring supply chain flexibility.

Nvidia’s emphasis on AI and machine learning has established it as a pivotal player in data center development, AI research, and high-performance computing. Huang's remarks highlight the necessity of sustaining a flexible, diversified supply chain and the importance of global collaboration in AI research and development.

As the company confronts regulatory challenges, including trade restrictions and export controls, it remains dedicated to extending its technology and standards internationally, guaranteeing access to computing power for nations and industries around the globe.

The company’s vision for AI aligns with a future in which countries and industries can entirely leverage the potential of artificial intelligence while navigating the intricacies of the global tech environment.
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