Syed Imran Haider 
On Wednesday, Jensen Huang, the CEO of Nvidia, revealed that they had made a bet a decade ago, which has given the company advantage in artificial intelligence (AI).
He said that they had invested billions of dollars in AI and a team comprised of thousands of engineers.
The shareholder meeting
The comments from the CEO came at the first shareholder meeting of the company since its stock began to climb.
There has been heightened interest in Nvidia on Wall Street because of the dominant position the company holds in the AI chip market.
Nvidia has experienced a record surge since it held its last shareholder meeting. Its stock has recorded a 193% increase and there was also a 10-1 split.
It saw its valuation cross the $3 trillion mark and had also briefly become the most valuable company in the United States.
Huang addressed the rising competition is facing during the Q&A session of the shareholder meeting. Nvidia currently holds 80% of the market share for AI chips.
However, both startups and traditional chipmakers are launching products aimed at challenging Nvidia. Huang was careful to not mention any competitors in particular.
The strategy
The CEO said that the company was working on a strategy that would help it maintain its position. He said that thanks to its gaming focus, it was now a data center-focused firm.
Nvidia is also working on creating new markets for AI, including industrial robotics. It also intends to partner with every cloud provider and computer maker for this purpose.
Huang also explained that the company’s chips are more economical than others. While they may have a higher price tag, they offer better performance and a lower cost to run.
He also asserted that the firm had achieved a ‘virtuous circle’. The tech industry uses this term to highlight a platform with the most users.
This helps it make improvements needed for attracting more users.
The response
According to Huang, every major computer maker and cloud provider offers the NVIDIA platform. This has helped them create an attractive and large install base for customers and developers alike.
He added that this adds more value or its clients. The company’s shareholders were pleased with its performance.
They also granted approval for a nonbinding vote on ‘say on pay’, which is aimed at executive compensation.
Nvidia executives receive their compensation as a combination of their salary and different types of restricted stock units.
During the fiscal year of 2024, the compensation package of the CEO was valued at a total of $34 million. The annual filing of the company showed that this was a 60% increase from last year.
Its share price experienced a decline of 1% on Wednesday after the shareholder meeting.
