NVIDIA CEO reveals how SEGA’s investment avoided bankruptcy and changed history

NVIDIA’s executive director, Jensen Huang, visited Tokyo on Wednesday, July 15, 2026, and recalled a critical moment that saved his company from bankruptcy in the 1990s. According to Huang, a strategic decision by SEGA, to convert debt into equity, was fundamental to the survival of the technology giant, which today dominates the global chip and artificial intelligence market.

A technological choice that almost cost NVIDIA its existence

In 1995, NVIDIA was a startup and bet on the NV1 chip, designed to render graphics based on curves. Although innovative, this model quickly became obsolete with Microsoft’s release of DirectX, which standardized the use of triangles in the gaming industry. This technological divergence placed the company in an extremely delicate financial situation.

SEGA, which had an agreement with NVIDIA to supply graphics hardware for the Dreamcast console, decided to end the contract. This move represented the loss of a value of US$5 million, which, at the time, meant the imminent end for the then small NVIDIA.

The negotiation that turned a debt into an opportunity

Faced with the imminent crisis, Jensen Huang traveled to Japan to meet with Shoichiro Irimajiri, then CEO of SEGA, and Yu Suzuki, game designer. At the time, Huang proposed an unusual solution: instead of paying the debt, SEGA would receive a minority shareholding in NVIDIA.

This renegotiation gave NVIDIA the time and capital needed to recover and develop the RIVA 128 chip, launched with great success in 1997. SEGA’s decision not only gave the technology company a financial breather, but also allowed it to pivot its strategy and align itself with new market standards.

The colossal difference between the original investment and the current value

After NVIDIA’s initial public offering (IPO) in 1999, SEGA sold its shares for approximately US$15 million. At the time, it seemed like a good deal, representing a considerable profit on the original investment. However, time has revealed the magnitude of the potential that SEGA let slip away.

Hoje, as mesmas ações que a SEGA vendeu por US$ 15 milhões teriam um valor estimado de cerca de US$ 1 trilhão. This fact highlights NVIDIA’s immense growth and how Jensen Huang’s long-term vision, combined with SEGA’s bet, changed the course of technology history.

Current partnership: the legacy of a lasting relationship

Even after SEGA withdrew from the console hardware market, collaboration with NVIDIA persisted over the years. Recently, the two companies announced new projects that aim to integrate games like Virtua Fighters Crossroads into NVIDIA’s line of RTX Spark chips.

This ongoing partnership demonstrates a mutual recognition of the historical importance and current relevance that each company holds in the world of games and technology. NVIDIA’s trajectory is a testament to the impact a business decision can have, shaping not just the destiny of a company, but also the future of an entire industry.