Jason Huang in front of a line of robots and androids at CES 2025.

The Nvidia Way: How a Graphic Cards Company Conquered AI

You’ve probably experienced Nvidia’s technology firsthand, whether you’re a hardcore gamer who’s marveled at the lifelike graphics of the latest AAA titles or an investor who’s ridden the wave of Nvidia’s soaring stock price. From powering cutting-edge research in artificial intelligence to enabling the immersive worlds of virtual reality, Nvidia’s chips are quietly revolutionizing our world.

But how did a company that started by making graphic cards for video games become the undisputed king of the AI revolution? The answer lies in a unique blend of visionary leadership, a relentless culture of execution, and a few strategic bets that paid off big time. Much of what we will discus here is based on an interview between journalist Tae Kim, author of “The Nvidia Way”, and the YouTube channel Asianometry.

Introducing “The Nvidia Way”

In his new book, “The Nvidia Way,” journalist Tae Kim pulls back the curtain on this Silicon Valley titan, offering a fascinating glimpse into the company’s inner workings and the mind of its enigmatic founder and CEO, Jensen Huang. Based on extensive interviews with current and former employees, competitors, and industry insiders, Kim’s book provides a compelling narrative of Nvidia’s journey from a scrappy startup to a trillion-dollar tech behemoth.

Nvidia’s success isn’t just about building faster chips. It’s a testament to a unique company culture, defined by a “mission is the boss” mentality, a relentless pursuit of “speed of light,” direct communication, and the long-term vision of Jensen Huang.

The Genesis of Nvidia: From “NV” to “Envy”

Nvidia’s story began in a Denny’s in 1993. Back then, co-founders Jensen Huang, Chris Malachowsky, and Curtis Priem didn’t even have a name for their company. They simply labeled their files “NV,” short for “next version”, while working out of their initial Sunnyvale headquarters. When the time came to incorporate, they brainstormed words containing those two letters. Their first choice, “NVision”, was already taken – by a toilet paper company.

It was Huang who suggested “Nvidia”, derived from the Latin word “invidia” meaning “envy”. An unusual choice, perhaps, but it reflected their ambition to create technology that would be the envy of the industry. The name also subtly hinted at a challenge to the established order, a nod to the Roman interpretation of the Greek goddess Nemesis, who represented righteous indignation against hubris.

This ambition was evident early on, as Nvidia secured $20 million in venture capital funding from Sequoia Capital and others, leading to a successful IPO in 1999. The company’s logo, a stylized eye, also hints at its forward-looking nature. Though unconfirmed, some speculate it’s a nod to Horus, the ancient Egyptian god of the sky, often depicted with a prominent eye. The logo, redesigned in 2006 to be bolder and more modern, symbolizes Nvidia’s focus on the future of visual computing.

From Gaming to AI: Key Strategic Decisions

Nvidia’s early success was built on revolutionizing the world of computer graphics. Their Reva 128 chip, despite early setbacks, was a significant win. But they didn’t stop there. Nvidia made a key strategic decision to compress their product cycles, moving from an 18-month cycle to a blistering 6-month cycle (and now a one-year cycle for AI GPUs), leaving competitors like 3dfx and ATI in the dust.

Perhaps the most pivotal decision, however, was the development of CUDA (Compute Unified Device Architecture) in 2006. This was a game-changer. CUDA allowed developers to harness the parallel processing power of GPUs for general-purpose computing, not just graphics. It was a long-term bet that took years to fully pay off, but it laid the foundation for Nvidia’s dominance in the burgeoning field of artificial intelligence.

The Nvidia Way: A Culture of Speed, Intensity, and “Rough Justice”

What truly sets Nvidia apart is its unique company culture, as detailed in Tae Kim’s book. At the heart of it is the principle of “mission is the boss.” This means every decision is made based on what’s best for the company and the customer, not internal politics or appeasing superiors.

Then there’s “speed of light.” Nvidia strives for maximum efficiency, eliminating wasted time and streamlining processes. Meetings are conducted with a whiteboard, not PowerPoint, fostering active discussion and debate. Employees are expected to be honest and direct, even when delivering bad news.

Nvidia also cultivates strong, long-term relationships with partners like TSMC, based on a concept Huang calls “rough justice” – a willingness to make short-term sacrifices for mutual long-term gain.

Jensen Huang: The Visionary Leader at the Helm

At the center of it all is Jensen Huang, Nvidia’s co-founder and CEO. He’s known for his intense, hands-on leadership style. He’s a voracious emailer, using the medium to keep a constant pulse on every aspect of the company. Every employee, from entry-level engineers to senior executives, sends a “top five” email, outlining their priorities and challenges, giving Huang an unfiltered view of the company’s operations.

Huang is famous for bypassing layers of management, directly engaging with employees at all levels. He’s also known for his mental toughness, using phrases like “how hard can it be?” to challenge himself and his team. And, in a unique management structure, he reportedly has around 60 direct reports.

The Man and His Style

While he’s now often seen in a signature black leather jacket, a style adopted after Nvidia was already well-established, it’s more of a personal quirk than a defining characteristic of the company’s success. His minimalist attire – often just a black T-shirt and jeans – contrasts with his demanding leadership style. But it’s the substance of his vision and the culture he’s built that truly matter. And yes, the story about Huang flipping a chessboard after losing to his CFO, only to challenge him to a ping-pong match (which Huang is apparently very good at), perfectly illustrates his extreme competitiveness.

The Future of Nvidia: Challenges and Legacy

Nvidia’s dominance faces challenges. The most significant is the eventual transition of leadership beyond Jensen Huang. Can the next CEO maintain the unique culture that has driven Nvidia’s success? Will they be a Satya Nadella, who successfully built upon Microsoft’s legacy, or a Steve Ballmer, who arguably lost the company’s innovative edge?

Despite immense wealth, Huang remains driven by competition, a passion for technology, and a desire to make a positive impact on the world, particularly through advancements in digital biology. He’s also deeply proud of the company he’s built and the opportunities it provides for its employees.

Conclusion

Nvidia’s story is a compelling example of how a company, driven by a clear vision and a unique culture, can achieve extraordinary success. While the leather jacket might be a memorable quirk, it’s the “mission is the boss” mentality, the relentless pursuit of “speed of light,” and the culture of direct communication that truly define the “Nvidia Way.” It’s a story of hard work, resilience, and a focus on innovation, proving that there are no shortcuts to building a lasting legacy in the tech world. And as Nvidia continues to push the boundaries of AI, its impact on our future is only set to grow.

Want to delve deeper into the Nvidia story? Check out Tae Kim’s book, “The Nvidia Way,” and be sure to watch his insightful interview with Asianometry on YouTube. You might just gain a new appreciation for the company behind the graphics card in your computer or the stock ticker in your portfolio.


This blog post is based on the Youtube video and a chat with NotebookLM about how the content could be prepared for a text.

I had to find some additional facts about e.g. the origin stories about Nvidia’s name, the logo and Jensen Huang’s iconic leather jacket. This was done with the assistance of Gemini 1.5 Pro with Deep Research.

The next step included a chat with Gemini 2 Advanced and the writing of the post. Finally, I created the featured image with Dalle-E 3.


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