Israeli VCs See $6.9 Billion Mellanox Legacy Opening Door for AI Chip Rivals After Huang Exit
Updated
Updated · TechCrunch · Nov 13
Israeli VCs See $6.9 Billion Mellanox Legacy Opening Door for AI Chip Rivals After Huang Exit
3 articles · Updated · TechCrunch · Nov 13
Summary
Israeli investors say Jensen Huang’s resignation could give AI chip and inference startups a rare opening, even if Nvidia’s grip on demand is unlikely to break quickly.
Nvidia’s leadership uncertainty matters acutely in Israel, where the company employs 6,000 people, built its biggest non-U.S. R&D base after buying Mellanox for $6.9 billion, and planned a multibillion-dollar campus.
Colette Kress’s past emphasis on Israel and the presence of Israelis Johny Srouji and Michael Kagan among floated successors have eased some fears that Nvidia could sharply reduce its local commitment.
Vertex Ventures and Selah Ventures said a slower, less centralized Nvidia may leave more room for challengers, though weaker decision-making could also slow AI spending and shrink the overall prize.
The broader bet is that Huang’s departure weakens Nvidia’s monopoly trajectory rather than its technology stack, creating a window for alternatives as companies deploy more demanding AI agents.