How Nvidia Actually Allocates GPUs - Jensen Huang

Jensen Huang addresses misconceptions about a widely reported dinner with Larry Ellison and Elon Musk, clarifying that while they did have dinner, the tech leaders never begged for GPUs as reported in media coverage. Instead, they simply needed to place orders like any other customer. Huang explains Nvidia's systematic approach to GPU allocation, which begins with working closely with customers to develop accurate forecasts since both GPU manufacturing and data center construction require significant lead times. The company prioritizes customers who are prepared and ready to receive shipments, as serving unprepared customers would reduce overall factory throughput efficiency. Beyond readiness considerations, Nvidia follows a straightforward first-in-first-out allocation system. Huang explicitly rejects auction-style pricing to the highest bidder, viewing this as poor business practice that would undermine Nvidia's role as a dependable industry foundation. The company maintains consistent pricing regardless of demand fluctuations, emphasizing reliability and predictability over short-term profit maximization.