@baozong_facai: Jensen Huang once recounted a trip to Japan that nearly saved NVIDIA from the brink of death. At that time, NVIDIA was running out of money. He said: 'If that contract was canceled, our company would be finished, possibly evaporating in an instant.' Back then, Jensen signed a contract with Sega to develop a game console chip for them. But halfway through...

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Jensen Huang tells the key historical moment when, with NVIDIA on the verge of bankruptcy, he honestly admitted technical failure to Sega and asked to cancel the contract, ultimately earning their trust.

Jensen Huang once recounted a trip to Japan that nearly saved NVIDIA from the brink of death. At that time, NVIDIA was running out of money. He said: “If that contract was canceled, our company would be finished, possibly evaporating in an instant.” Back then, Jensen had signed a contract with Sega to develop a game console chip for them. But halfway through, he realized the technical approach was fundamentally unworkable. Continuing would not only drag NVIDIA down, but also waste Sega’s money. So he flew to Japan and met with Sega’s CEO, Shoichiro Irimajiri. He said: “I have some bad news. The technology we promised cannot be built. And I don’t recommend completing this contract, because it would only waste your money, and the end product would be unusable. You should find another partner.” Then he made a request that would almost certainly be rejected: “Even though I’m asking you to cancel the contract, we still need this money. If you stop paying, NVIDIA might collapse immediately.” This is what makes Jensen Huang so formidable: Not surviving by dressing up the problem, but by facing it honestly, and in the end, earning trust.
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Jensen Huang once recounted a trip to Japan that nearly pulled NVIDIA back from the brink of death.

At the time, NVIDIA was running out of money.

He said:

“If that contract got canceled, the company would be finished—it could vanish in an instant.”

Back then, Huang had signed a contract with Sega to develop a game console chip.

But halfway through, he realized the technical path was simply not feasible.

Continuing would not only drag NVIDIA down, but also waste Sega’s money.

So he flew to Japan and met with Sega’s CEO, Shoichiro Irimajiri.

He said:

“I have bad news.

The technology we promised—we can’t deliver it.

And I don’t recommend completing this contract, because it will only waste your money, and the final product won’t be usable.

You should find another partner.“

Then, he made a request that seemed almost impossible to grant:

“Even though I’m asking you to cancel the contract, we still need this money.

If you stop paying, NVIDIA might collapse immediately.“

That’s the most ruthless thing about Jensen Huang:

He didn’t survive by glossing over problems,

but by facing them honestly—and in doing so, he earned their trust.

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