David Sacks on Jensen’s Exit: China Wins, America Loses

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Episode Description

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Brief Summary

David Sacks argues Jensen Huang’s exit could slow Nvidia’s chip advances and give Huawei and China room to catch up.

Key points

  • America’s Edge Is Momentum. The speaker argues that America’s advantage is not an old state-of-the-art chip, but the ability to rapidly develop more powerful generations.
  • Jensen’s Exit Could Slow Nvidia. Jensen is described as fundamental to Nvidia’s yearly chip progress; without him, the company may lose pace.
  • Huawei Could Catch Up Faster. If Nvidia’s chips stop advancing at the same pace, Huawei could close the gap much sooner.

Transcript

You ask the question, cui bono, who benefits? It's China. China benefits from this. Jensen's been working on GPUs for over three decades. The chips are being improved rapidly. There's a new generation of chips that come out every year. And it's that momentum, it's the ability to tape out a brand new chip that's several times more powerful than last year's chip. That's the real advantage. It's Nvidia's competitive advantage and it's America's advantage. So it's the momentum, it's the dynamism. People get way too hung up on some chip that was state of the art four years ago. That's not where the United States has the advantage. It's that we are

rapidly iterating and we keep coming up with better and better and more and more powerful chips. Now, let's take into account what's just happened. Do you think that Nvidia is going to lose a tempo or two? Absolutely. I mean, again, Nvidia's success was based on the ability to tape out a new chip design every year. And Jensen is fundamental to that rapid progress, the same way that Elon is fundamental to the rapid progress at SpaceX or Tesla. And if you take him out of the picture, there's just nobody comparable. It means that Nvidia's chips will not continue to advance at the same pace. That's really good news for Huawei because they will

catch up a lot faster.

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