INVISTA startup story: 1 restaurant, 3 people, 10 cups of coffee, trillion dollar market
June 8th, 2023

Early history is very important for a company, and it often hides some spiritual core that is no longer valued by the outside world.

A few days ago we shared some of Jen-Hsun Huang's philosophy on managing a company, and today this is a WSJ interview with Nvidia's co-founder talking about trivia from 30 years ago.

Compare that to those other trillion dollar tech companies, Microsoft and Apple that were made into movies, Google with its genius twins, Bezos who gave up a high paying job at a hedge fund in his garage ...... Few people care about the original story of Nvidia.

But like a semiconductor chip, it's not usually seen, but it's an essential engine for the entire computing world.

Three people, 10 cups of coffee

Denny's, an American chain, open 24 hours, cheap, large portions, and high calorie, is one of the largest restaurant chains in the country.

Often located along the highway, like the one we're talking about today.

Thirty years ago, three engineers met at a restaurant in San Jose to discuss the future of computers.

A "Grand Slam" breakfast set ignited a dream to change the world.

"We're not good customers, 10 cups of coffee in four hours (for three people)," says Chris Malachowsky. Chris Malachowsky says.

Because they often stayed too long, they were kicked out of the business area by the restaurant manager and relocated to a small room in the back of the restaurant.

That small room became a co-working space for two teams, with the California police writing reports on one side and the three founders of NVIDIA on the other.

"We sat there with our laptops, trying to figure out what we were doing.

Not just starting a business, but creating a market

Thirty years later, we all know what they were doing. But nobody could figure it out then. "[The GPU market] didn't exist."

In the hotel, the first thing the founders of Nvidia discussed "was what we wanted to be.

They wanted to create a better chip and create a business model around it. chris Malachowsky was in charge of hardware design, Curtis Priem was in charge of software architecture, and Jensen Huang was in charge of business decisions.

They did market research in hotels, studying potential competitors, the price of silicon, and the potential profit margins of companies they hadn't named yet.

That moment set up Nvidia's current success - targeting the 'market that doesn't exist'.

Jen-Hsun Huang likes to call it the "$0 billion market," but of course now people would say that it is a trillion dollar market.

Every trillion dollar business has its origins in the exploration of 0 billion, whether it's PC gaming or AI computing.

Grassroots trivia, no air conditioner, no name

"Huang refused to join the company unless it could achieve $50 million in sales in a year," says Priem, who is responsible for software architecture. Priem, who is responsible for software architecture, said Jen-Hsun Huang was the head of sales at LSI Logic before starting the business.

The three founders of NVIDIA chose to meet at the restaurant because they came from different companies, Chris and Priem from Sun Microsystems (acquired by Oracle in '09) and Jen-Hsun Huang from LSI Logic, and they needed a place to talk about quitting, so they needed a "middle ground.

They met several times between 1992 and 1993 to discuss chips built specifically for 3D gaming, and they started the company at Denny's, but moved away before it was officially named NVIDIA.

"When they noticed the bullet hole in the front window, they realized that a restaurant on the side of the highway would not be the ideal office.

"Maybe this isn't the place to stay," Chris joked to reporters.

Then they moved to a townhouse in Unicron Priem, where privacy was protected, but there was no air conditioning and no name.

"It shouldn't be a real word or say what we're going to do," Jen-Hsun Huang told Chris, "The three of us sitting in an apartment with no air conditioning, who knows what we'll end up doing?

The only thing they knew for sure was that they were going to enter the chip industry. At the time, graphics cards were generally named with only two letters, and the founders liked the sound of NV, envy, jealousy.

At first they wanted to call it Nvision, not a word in the dictionary, and without revealing their business, perfect.

Then they realized the problem: there were already several companies with similar names, including one that made toilet paper.

Then they started going through the Latin dictionary and found the Latin word for jealousy: Invidia.

Take away the first letter.

The trillion dollar leather man who worked as a waiter 40 years ago

Many people may not know that Jen-Hsun Huang used to be a waiter at that Denny's restaurant. He said because of this job, he was forced to go from tech geek to 'social cow'.

Bonus takeaway: If you don't have a relationship, don't just go to a restaurant and get in the way of other people's business.

Jen-Hsun Huang has been running Nvidia since Mark Zuckerberg was in elementary school, but he wasn't always the confident leather-clad guy people remember now.

Denny's feels like old home to Jen-Hsun Huang. Without his waitressing job at Denny's, Jen-Hsun Huang might not be the tech leader he is today - in his own words.

Early on, Jen-Hsun Huang was very shy, but his simple job as a waiter at Denny's transformed him.

Taking orders for pancakes from others taught him how to interact with strangers and how to make compromises in situations beyond his control.

A vision that matters and deserves to be believed by no one

In the early days, it was hard for them to sell their vision. When Jen-Hsun Huang told his mother, his mother didn't believe him.

Jen-Hsun Huang still remembers what his mom said to him when he told her he was going to start a chip company and let people buy cards to play games:

"Why don't you get a job?

Until 1997, when Nvidia released the RIVA 128, they were at risk of bankruptcy.

The story of CUDA is the same.

In 2008, NVIDIA's CUDA parallel computing architecture was not well received by the market, and their market cap fell below $5 billion during the financial crisis.

The contrasting figure is that when Nvidia's market cap soared last week, Jen-Hsun Huang's personal fortune grew by $6 billion in one day.

As it was 30 years ago, and as it was 15 years ago, Jen-Hsun Huang has always believed in the future he saw.

If you are concerned about the Big Model space, please scan the code to join our Big Model Exchange Group to discuss the consensus and perception of the Big Model era and keep up with this wave of the Big Model era.

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