Get All Access for $5/mo

Nvidia CEO Jensen Huang Turned Down a Merger Offer in the Company's Early Days, According to Insiders. Here's Why. It has to do with an "Apple strategy."

By Sherin Shibu Edited by Melissa Malamut

Key Takeaways

  • Two AMD engineers confirmed that Nvidia could have merged with AMD in the mid-2000s in Friday posts on X.
  • According to the posts, AMD almost bought Nvidia but Nvidia CEO Jensen Huang didn't want to sell unless he was the CEO of the resulting combined company.
  • Nvidia has a $3.1 trillion market cap, over ten times more than AMD's $288 billion.

Back when Nvidia was a smaller industry player, AMD almost bought it. According to insiders, Nvidia CEO Jensen Huang had a deal-breaking condition that prevented the merger: He wanted to be CEO of the joint company.

Former AMD engineer Hemant Mohapatra shared a behind-the-scenes look into why an AMD-Nvidia alliance never came to fruition in a series of Friday posts on X. Mohapatra worked at AMD for over six years before eventually moving into venture capital.

He wrote that AMD "should have acquired Nvidia — and we tried," but Huang "clearly thought very long term and was building his 'Apple strategy'" of locking in users.

Related: Nvidia Long-Term Employees 'Semi-Retired' Multimillionaires

"He refused to sell unless he was made the joint company's CEO to align with this strategy," Mohapatra wrote. "AMD blinked and our future trajectories splintered forever."

Current AMD engineer Phil Park confirmed Mohapatra's account on Friday, writing, "I've never met Hemant, and though there are a few things where I have a different opinion, the anecdote about Jensen wanting to be CEO is true."

Related: Is It Too Late To Buy Nvidia? Ex-Morgan Stanley VP Weighs In

A 2012 Forbes article further confirms the possible Nvidia-AMD merger and gives it more of a concrete time frame.

According to the piece, Nvidia almost became part of AMD in 2006 as AMD tried to get ahead of Intel by adding a graphics arm. After Huang wanted to be CEO of the combined tech company, AMD acquired Nvidia's rival ATI for $5.4 billion in July 2006 instead.

At the time of writing, Nvidia's $3.1 trillion market cap is over ten times more than AMD's $288 billion.

Related: Elon Musk Praises Nvidia CEO Jensen Huang's Leadership Style

Nvidia "stuck to their guns, and the market came to them eventually when AI took off," Mohapatra wrote. "Most give up, Jensen just kept going harder."

Nvidia CEO Jensen Huang in June 2024. SAM YEH/AFP via Getty Images

Nvidia has been making graphics chips for more than 30 years and started working towards AI and deep learning in 2006.

The multi-year, multi-billion dollar effort gave Nvidia a head start in the AI race: Nvidia's chips are now the brains of OpenAI's ChatGPT.

Nvidia also has over 80% of the AI chip market, though competition is intensifying as some of its biggest tech clients focus on making chips in-house.

Related: Nvidia CEO Jensen Huang Reveals His Competition Strategy

Sherin Shibu

Entrepreneur Staff

News Reporter

Sherin Shibu is a business news reporter at She previously worked for PCMag, Business Insider, The Messenger, and ZDNET as a reporter and copyeditor. Her areas of coverage encompass tech, business, strategy, finance, and even space. She is a Columbia University graduate.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Business News

How to Be a Billionaire By 25, According to a College Dropout Turned CEO Worth $1.6 Billion

Austin Russell became the world's youngest self-made billionaire in 2020 at age 25.


Taylor Swift Has a Lucky Number. And She's Not the Only High Performer Who Leans Into Superstitions to Boost Confidence.

Even megastars like Swift need a little extra something to get them in the right mindset when it is game time.


These 3 Big Tech Companies Offer 6-Figure Salaries and Easy Interviews — Especially If You Follow This Expert's Advice

There are far more candidates than positions, so being strategic on the job hunt is key.


SEO Trends You Need to Be Aware of Right Now, According to a Seasoned Pro

Navigate the future of search engine optimization to elevate your online presence and drive meaningful engagement.

Health & Wellness

4 Habits I Cultivated to Become a Healthier, More Effective Entrepreneur

By the time I hit mid-life, some of my bad habits were becoming a risk to my long-term business goals — and my health. Here's how I was able to change them.