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Israel’s investors see rivals gaining ground amid Nvidia leadership uncertainty
Jensen Huang’s departure as Nvidia’s chief executive has prompted concern in Israel, where the company is a major employer and research presence, but some investors see a chance for rivals to gain ground. The leadership change matters because Nvidia’s dominance in AI chips has helped drive industry spending, while its commitment to Israel is closely associated with Huang.
Nvidia employs 6,000 people in Israel, acquired Israeli chipmaker Mellanox for $6.9 billion in 2019 and plans a multibillion-dollar campus there. Potential successors reportedly include Israelis Johny Srouji of Apple and Michael Kagan of Nvidia, though neither is considered a leading candidate. Investors say a change in leadership could slow decisions and give AI chip and inference software challengers room to prove their economics, but weaker AI spending could also shrink the market.
In short
- Huang’s exit raises questions about Nvidia’s commitment to Israel.
- The company employs 6,000 people there and bought Mellanox for $6.9 billion.
- Investors see an opening for AI chip rivals, if they can prove their value.
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Originally published by TechCrunch as “Israel’s VCs see opportunity for challengers in Nvidia’s turmoil”.