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Friday, May 09, 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, refuted claims during the company's annual developer conference, asserting that Nvidia was not engaged in negotiations to take over Intel's chip manufacturing operations. Huang dismissed these claims as false, stating, "If there’s a party, nobody invited me."

Last week, Reuters reported that Taiwanese semiconductor firm TSMC was in discussions with Nvidia, along with AMD and Broadcom, to establish a joint venture aimed at acquiring control of Intel's chip production as the company faces ongoing operational difficulties.

In response, Huang strongly denied the reports, saying, "I don’t know where this came from. No one invited me to the party. Perhaps others are involved, but not me."

Nvidia's Position on AI Chip Export Restrictions
Huang also discussed the recent export limitations on AI chips set by the Biden administration during its final weeks in office. These restrictions categorize countries into three tiers.

Tier one includes the United States and 17 other nations such as Belgium, Canada, Australia, Denmark, France, Germany, and the UK, all of which face no export restrictions. Conversely, tier three consists of countries like China, Russia, Iran, and North Korea, which will experience a complete prohibition on AI chip exports.

150 countries, including Poland, Mexico, Israel, Singapore, and the United Arab Emirates, fall under the second tier, where exports of AI chips are allowed but only within specific computing power thresholds.

When questioned about these export regulations, Huang remarked, "In the long term, I believe that AI is a technology essential for every nation, every industry, and every company.

AI has become mainstream. We discuss AI as if it’s some extraordinary innovation, but it is essentially software. Every nation will be capable of running software. If feasible, we would like to assist every country with American technology and standards. It’s beneficial for nations to access the computing power they require, and it’s advantageous for the United States as well."

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

"We possess a highly adaptable supply network. Not just in Taiwan, Mexico, or Vietnam, but in various locations. It’s a complicated matter, and it hinges on which country faces the tariffs. Thus, in the short term, we do not anticipate any major impact on our operations. In the long term, we aim to preserve our flexibility through local production. If we integrate local production into our supply chain by year’s end, our position will be quite favorable. We have the capacity to produce extensively in the U.S. Not everything, but a substantial amount."

Nvidia’s Approach to Export Restrictions to China
Huang also spoke about how Nvidia is managing the export restrictions on chips to China, which were enforced by the Biden administration in the autumn of 2023. He stressed, "We are fundamentally committed to conducting our business in accordance with the law and striving to compete while serving our customers. As the world grows increasingly complex, we must abide by the law while doing our utmost to cater to customers and markets. Half of the world’s AI researchers come from China, and the second-ranked nation is far behind. Hence, it’s reasonable for China to significantly contribute to AI research. Every AI lab in the U.S. includes many outstanding Chinese researchers, without exception. China produces numerous exceptional computer scientists, so please keep it up."

Energy Requirements for AI Data Centers
Lastly, Huang tackled the issue of the high energy demands associated with establishing data centers for AI model development. He contended that the discourse surrounding energy consumption in AI was misguided. "AI is a new manufacturing sector. And manufacturing requires energy. The real question is, does a country want to produce AI? If the answer is affirmative, energy is necessary. Of all the energy-consuming sectors, which should be prioritized for production? Cement? Steel? Agriculture? AI? That’s a straightforward question."

Further Insights on Nvidia’s Strategy and Market Position
Under Huang’s leadership, Nvidia has consistently solidified its role as a frontrunner in the AI and GPU markets. The company is recognized for its groundbreaking work in AI, deep learning, and high-performance computing. Huang’s comments at the conference highlight the company’s strategy for addressing global challenges, such as managing international relations, driving technological advancement, and ensuring supply chain agility.

Nvidia’s emphasis on AI and machine learning has positioned it as a vital force in data center development, AI research, and high-performance computing. Huang's remarks stress the necessity of sustaining a flexible and diverse supply chain while fostering global collaboration in AI research and development.

As the company navigates regulatory challenges, including trade restrictions and export limitations, it remains dedicated to expanding its technology and standards internationally, thereby facilitating access to computational power for countries and industries around the globe.

The company’s vision for AI aligns with a future where nations and industries can fully leverage the capabilities of artificial intelligence while managing the intricacies of the global technology landscape.
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