GoKawiilWSJ: Huang Told Nvidia CFO Chip Supply Was Coming Like an 'Avalanche'
According to the Wall Street Journal, Nvidia's former CEO Jensen Huang acknowledged in an August 2026 meeting that major cloud providers were shifting to in-house chips, leaving Nvidia with a surplus of prepaid TSMC wafers and memory. The report describes a clash between Huang and then-CFO Colette Kress, who pushed to scale back Nvidia's financial backstop commitments to OpenAI from roughly 8 gigawatts ($250 billion) to about 4.25 gigawatts ($125 billion). Kress has since become Nvidia's interim CEO, and Nvidia has reportedly contacted TSMC to wind down chip orders.
GoKawiil's interpretation of the reporting above, not reported fact.
The account suggests Nvidia's demand picture may have been less robust than publicly portrayed, with internal disagreement over how much financial exposure to cloud customers was prudent. Kress's rise to interim CEO following this dispute could signal a shift toward tighter financial discipline at Nvidia, though the long-term implications for its relationships with TSMC and major cloud customers remain unclear.
- Huang reportedly admitted major cloud providers are moving to in-house chips, leaving Nvidia oversupplied on wafers and memory.
- CFO Colette Kress pushed back on circular financing deals, cutting Nvidia's OpenAI backstop from $250B to $125B.
- Nvidia has reportedly asked TSMC to wind down chip orders amid the oversupply concerns.
Source: respawnfirst.com — Sikandar Mahmood, 2026-11-13
Published there as: “Jensen Huang Admitted He Was Facing an "Avalanche" of Excess Wafers and Memory”
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