As NVIDIA replaces Intel in the Dow Jones Industrial Average, a fascinating historical revelation from the tech community has sparked discussions about what could have been one of the most significant missed opportunities in semiconductor history.
The $20 Billion Decision That Changed Everything
Twenty years ago, Intel's CEO proposed acquiring NVIDIA for $20 billion, but the board of directors rejected the deal as too expensive. This decision, revealed in community discussions, has become a pivotal moment in tech history, especially considering NVIDIA's current market capitalization of $3.3 trillion, making it the second most valuable publicly traded company after Apple.
The CUDA Revolution and AI's Foundation
Community members with experience in High-Performance Computing (HPC) highlight that NVIDIA's success isn't merely a fortunate accident of the AI boom. The company's decade-plus investment in CUDA and its software ecosystem, starting from 2007, laid the groundwork for the modern AI revolution. Early adopters recall how even desktop workstations with NVIDIA GPUs could outperform mainframe computers, fundamentally changing the accessibility of parallel computing.
Culture Clash and Innovation
Several tech industry veterans argue that Intel's acquisition might have actually stifled NVIDIA's innovation. The cultural differences between the two companies were significant - Intel's management style, particularly its 3rd wave management by MBA, as described by community members, could have potentially derailed NVIDIA's research and development trajectory. This perspective suggests that remaining independent was crucial for NVIDIA's eventual success.
The Role of Software in NVIDIA's Dominance
While competitors like AMD had similar hardware capabilities and GPU compute APIs, NVIDIA's commitment to maintaining and developing CUDA, rather than switching to OpenCL, proved to be a crucial strategic decision. The community emphasizes that NVIDIA's success isn't just about hardware - it's about creating a reliable, well-documented software ecosystem that made parallel computing accessible to individual researchers and developers.
Impact on AI Development
An interesting debate within the community centers on whether LLMs (Large Language Models) emerged because of NVIDIA or if NVIDIA simply benefited from their emergence. While the first transformer models were developed at Google, many argue that NVIDIA's accessible hardware and software stack made the widespread development and deployment of AI models possible. The company's strategy of seeding universities with hardware accelerators for over a decade helped create the foundation for modern machine learning.
Looking Forward
As NVIDIA joins the Dow Jones Industrial Average, replacing Intel, the symbolism isn't lost on the tech community. However, experts note that the DJIA's influence is relatively limited compared to other indices like the S&P 500, with the combined index funds tracking the DJIA holding less than 0.1% of NVIDIA's market cap.
The story of Intel's missed NVIDIA acquisition serves as a reminder of how difficult it is to predict technological paradigm shifts, and how corporate culture and long-term technical investments can fundamentally shape the future of technology.