Uncertainty surrounding Nvidia co-founder and CEO Jensen Huang is pushing some of the company’s customers to explore alternatives from AMD and Google. A cloud provider executive, cited by ChainCatcher and The Information, revealed that while the company had previously considered diversifying to reduce reliance on Nvidia, concerns about offending Huang had delayed the move. Now, with Huang’s future in question, the executive worries about the potential impact on the quality and roadmap of future Nvidia chip generations, given Huang’s pivotal role in the company’s technology and customer relationships.
Interim CEO Colette Kress faces the challenge of retaining major customers as they evaluate other suppliers’ AI servers. Several customers noted that Nvidia chips are expected to remain in short supply in the near term, but they still view Nvidia’s offerings as the industry’s best. Kress must also navigate Nvidia’s complex ties in Washington, where Huang had a close relationship with U.S. President Donald Trump and advocated for changes to China export restrictions. However, Huang’s combative style reportedly alienated some in Washington.
According to Jukan, leadership uncertainty is beginning to weaken Nvidia’s grip on its customer base, as more companies seriously assess alternatives like AMD and Google chips.