Israeli VCs see opening for Nvidia challengers after Huang exit

Key points

• Nvidia employs about 6,000 people in Israel and built its largest R&D site outside the US there after buying Mellanox for $6.9bn in 2019
• Interim CEO Colette Kress, formerly CFO, said in a 2023 interview that she began her day with Israel meetings
• Israeli names floated for the top job include Apple's Johny Srouji and Nvidia's Michael Kagan, though the list is tentative

Israeli venture capitalists see an opening for Nvidia's challengers following the resignation of CEO Jensen Huang, TechCrunch reports. The semiconductor giant has become central to Israel's tech sector and its economic forecasts, and Huang once described the country as the company's "second home".

Huang drove its 2019 acquisition of Israeli chipmaker Mellanox for $6.9bn, which became the base for its largest R&D facility outside the US, and the company planned a multibillion-dollar campus in northern Israel. Pavel Gurvich, a repeat cybersecurity entrepreneur, said Huang's role in bringing Nvidia to Israel had left strong goodwill towards him in the local tech community.

Interim CEO Colette Kress, the former CFO, said in a 2023 interview that is circulating on X that she typically started her day with Israel meetings before turning to California.

Investors doubt demand for Nvidia's products will fade. Yanai Oron of Vertex Ventures Israel said slower decisions could let competitors in, but warned that if uncertainty also curbs AI spending they may win a larger share of a smaller market. Adi Levanon of Selah Ventures said Huang's departure does not dismantle Nvidia's technology or ecosystem but could give rivals more room to shape what comes next, with AI chip and inference software developers drawing venture interest.

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