Would You Keep Paul McCartney Waiting?

CNBC's Jim Cramer was bantering with fellow stock market commentator David Faber when Jensen Huang (shown in background) arrived nearly half an hour early for an interview with Cramer.

Jensen Huang and Elon Musk are the rock-starrish two most famous businessmen on the planet (the difference is that they're mobbed by nerdy guys instead of women).

Others who used to hold that lofty position, like Bill Gates and Jeff Bezos, have reduced their roles in the companies that made them centi-billionaires.

It's a sign of Jensen Huang's humility that he patiently waited for Jim Cramer to finish his segment, although Jensen is even busier than normal at this week's Nvidia GTC (GPU Technology Conference) in San Jose.

This blogger's question to Mr. Cramer: would you keep Paul McCartney waiting?

Nvidia's Management Secret: Top Five Things

(Bennett / aol photo)

Founders of world-class companies each have their distinguishing management characteristics--think Steve Jobs' perfectionism, Bill Gates' ruthlessness, and Elon Musk's first principles. Jensen Huang's is T5T (Top Five Things):

T5T emails began as a solution to a surprisingly tricky problem. Huang is allergic to the bureaucracy that infects organizations as they get bigger. But as his startup grew, he “needed to somehow keep tabs on what was going on inside Nvidia in order to make sure everyone had the right priorities,” [“The Nvidia Way" author Tae] Kim writes.

This turned out to be harder than etching billions of transistors on a silicon wafer.

The documents that make it to a typical CEO tend to get so watered down along the way that they’re liable to leave a puddle on his desk. Huang doesn’t bother with any of them. He doesn’t believe in formal strategic planning or status reports, either. “Status reports are meta-information by the time you get them,” Huang said last year. “They’re barely informative.”

He doesn’t want information that has already made its way through layers of management. What he wants is “information from the edge,” he said last month in a public interview with Laurene Powell Jobs.

The way he solved this problem was by asking roughly 30,000 employees at every level of the company to send regular emails to their teams and executives that even the CEO can access. Which he does—every single day. They’re usually brief and include a few bullet points, and glancing at them gives Huang a snapshot of what’s happening inside Nvidia, Kim writes.

It might just be the only way he can get the sort of unvarnished truth that nobody wants to give the CEO but every CEO needs to get. After all, Nvidia’s employees are not telling Huang what they think he wants to hear. They’re just telling him things.

T5T emails became a “crucial feedback channel” for Huang, Kim writes, because they allowed him to pick up on trends that were obvious to junior employees, even when top executives were completely oblivious.

All the aforementioned founders have been called workaholics because they don't make the mistake of over-delegation. Over-delegation tempts them to coast on their marketplace dominance, which dissipates often invisibly because they took their foot off the gas.

Through T5T Jensen Huang seems to have found an efficient way to access uncurated information flowing through his vast organization, but he still has to work around the clock. May he remain at Nvidia's helm for many years.

Nvidia and Apple: Matters of the Heart

Nvidia's Santa Clara HQ (NY Post)

Homegrown $2.3 trillion-dollar tech giant Nvidia gives a much needed shot in the arm to the Bay Area economy.

Headline: Nvidia widens South Bay property holdings with $350 million-plus deal

Nvidia has bought several office and research buildings in Santa Clara in a deal that tops $350 million and greatly broadens the fast-expanding tech company’s holdings in Silicon Valley...

The sites Nvidia bought are adjacent to and near the tech company’s modern and futuristic-looking headquarters complex at 2788 San Tomas Expressway. The just-bought properties could be redeveloped with new office and research buildings, potentially totaling up to 2 million square feet, according to Santa Clara city planning records.

Unlike big-name companies (Tesla, Oracle, HP) that have moved their headquarters from California, Alphabet (Google) and Meta (Facebook) have indicated that they are staying put by continuing to add people and real estate in the Bay Area, recent layoffs notwithstanding.

But Apple and Nvidia are special cases. When Apple built its $5 billion spaceship headquarters in Cupertino, it was an announcement to the world that it would always be based in Cupertino. Similarly, Nvidia bought, not rented, additional real estate, a signal that it, too, would not only be staying but expanding in Silicon Valley.

Cost-benefit analysis always produces the same result: expand anywhere outside of California because of California's high-cost housing, high taxes, and onerous regulation. Sometimes, after succeeding with a far-flung workforce, these companies move their headquarters away.

But Nvidia and Apple won't be moving away for the foreseeable future. Nvidia and Apple's founders got their start in the Bay Area, have a great deal of affection for their home towns, and most importantly controlled their companies. And who knows...the heart sometimes sees the future better than the head.

Nvidia: Grand Slam Origins

Denny’s CEO Kelli Valade and Nvidia’s Jensen Huang
at the Denny’s where Nvidia took shape. (WSJ photo)

In Silicon Valley, when young inventors need to build a prototype, they use their parents' garage.

When developing designs and business plans, a tolerant restaurant or coffee shop is the setting de rigueur.

And so it was that Nvidia, the newest entry in the trillion-dollar-market-value club, commemorated its founding 30 years ago at a Denny's restaurant in San Jose:

Last week, a San Jose Denny’s officially became a part of Silicon Valley lore.

The world’s tech capital is crawling with iconic names like Apple and Hewlett Packard that were founded in someone’s garage. Now the chain diner is officially credited as the birthplace of Nvidia, the chip company at the heart of the artificial intelligence revolution. With local news cameras in tow, Nvidia Chief Executive and co-founder Jensen Huang met Denny’s CEO Kelli Valade to unveil a plaque marking the booth where he and his co-founders sketched out the idea for the company back in 1993.

Denny's was more than the place where Jensen Huang came up with the idea for Nvidia:

As a young man, he worked at Denny's in San Jose.

"Oh, yeah, I was a dishwasher, I was a busboy, I was a waiter,” he said.

While on welfare J,K. Rowling wrote the first several Harry Potter books in Edinburgh cafés.

“It’s no secret that the best place to write, in my opinion, is in a café. You don’t have to make your own coffee, you don’t have to feel like you’re in solitary confinement and if you have writers block, you can get up and walk to the next café while giving your batteries time to recharge and brain time to think. The best writing café is crowded enough to allow you blend in, but not too crowded that you have to share a table with someone else.”

Ever since retirement I've been spending a lot of time at diners and coffee shops, waiting for inspiration to strike. And yet the $millions haven't rolled in....