Israel’s VCs see opportunity for challengers in Nvidia’s turmoil

Jensen Huang’s resignation has caused anxiety in Israel, where Nvidia employs around 6,000 people and has deep roots following its 2019 acquisition of Mellanox. Local tech figures note that Huang personally drove the company’s heavy investment in the region, raising questions about whether his successor will maintain the same level of commitment. Interim CEO Colette Kress has deep ties to the region, and Israeli executives like Apple’s Johny Srouji and Nvidia’s Michael Kagan have been floated as potential successors.

Despite the local uncertainty, venture capitalists in Israel view the transition as a potential turning point for the broader AI industry. According to Vertex Ventures Israel General Partner Yanai Oron, slower decisions at Nvidia could give rivals an opening, though a broader slowdown in AI spending remains a risk. Selah Ventures founder Adi Levanon notes that while Huang's departure does not dismantle Nvidia's ecosystem, it might prevent the company from becoming a full-on monopoly, giving alternative chip and inference software developers a chance to prove their economic value.