Lessons from Nvidia’s Journey: Persistence, Mistakes, and the Power of Adaptation
There is a lot more than meets the eye when you look at journey of a successful person or company...
We hear a lot about success stories, in Silicon Valley and elsewhere, but when you dig into the real history of companies like Nvidia, you see a different narrative—one filled with trial and error, missteps, and long-term persistence. I learned a lot listening to the excellent podcast on Nvidia by Acquired (by Ben Gilbert and David Rosenthal).
Here are my takeaways from a couple hours of this amazing conversation. And after reading this, if you are hungry for more, head over to this episode of Acquired — Nvidia: The GPU Company (1993-2006). I highly recommend it.
Myth of ideas
A lot of people talk about how important ideas are. And of course they are. But in the world of startups (and I believe in life), it’s not just about getting ahead fast; it’s about adapting and learning along the way. I have seen so many great founders talk about how long the path is from idea conception to a great product. People who have not started a business tend to forget the relatively small part an idea plays in the lifecycle of a business.
Dedication Isn’t Glamorous: The Stories of John Carmack and Jensen Huang
Take John Carmack, for example. This guy spent decades working on video games in the early ’90s. Yeah, his work looks legendary now, but that’s after 30, 40 years in the industry. Same goes for Jensen Huang, Nvidia’s CEO, who didn’t just stumble upon the idea of GPUs. It took years of grinding to get to a place where Nvidia started making waves. Behind all the headlines, there’s a level of dedication most of us don’t see (or even imagine).
Being First Isn’t Everything
Nvidia was a first-mover in the GPU space, but it didn’t immediately translate to success. Early on, they had issues predicting cost structures, which put them at a disadvantage. It’s a good reminder that being the first in the game isn’t always the win it seems. What matters is how you navigate the obstacles, adapt, and keep improving—something Nvidia did exceptionally well over time.
Leadership Means Owning Mistakes
One of the standout moments in Nvidia’s history was when Jensen Huang admitted that his strategy wasn’t working (his assessment that they are going to be unique and not a commodity hardware - which they had to become for some time). “I messed up,” he told his engineering team. “Now we need to rely on you.” That’s the kind of honesty that’s rare in leadership. It’s easy to see the wins, but taking responsibility for the failures is where real leadership happens. And in this case, it built trust with his team, which was crucial for their long-term success.
It reminds me of a similar act of leadership demonstrated by Dr. K. Sivan, the Chairman of ISRO during the Chandrayaan-2 mission. When the mission’s lander failed to touch down successfully on the Moon in 2019, Dr. Sivan took full responsibility and faced the press, allowing his engineers to focus on their work without facing public criticism. He didn’t let the engineering team bear the brunt of the failure. Later, when ISRO celebrated its successes in future missions, Dr. S. Somnath, the engineering in-charge of Chandrayaan-2, was given the opportunity to step into the spotlight. Dr. Sivan’s act of taking ownership not only protected his team but also allowed them to come back stronger—a hallmark of effective leadership.
Seven Powers That Keep Startups in the Game
Startups live or die by their ability to create and sustain competitive advantages. Nvidia managed to do this through what the podcast called the “seven powers.” These aren’t magic tricks; they’re foundational elements that give companies a fighting chance:
Scale Economies (growing efficiency with size),
Network Economies (value increasing with more users),
Counter-Positioning (doing something your competitors can’t easily replicate),
Switching Costs (making it harder for customers to leave),
Branding (being top-of-mind in your space),
Cornered Resources (exclusive access to key inputs), and
Process Power (nailing your operations in ways others can’t).
These powers are like a company’s lifeline in a competitive market.
The Power of Simulation: Not Just for GPUs
One of Nvidia’s core strengths is its ability to simulate real-world environments in a digital space using GPUs. This reduces the need to constantly run physical tests, saving time and resources. But the concept of simulation isn’t limited to tech. You see it in other industries and even in decision-making. Being able to simulate outcomes, test scenarios in your head, or run "what if" situations can give you an edge, whether you’re building a product or making a business decision.
Sequoia and the Art of Making Decisions Right
There’s an interesting bit about Sequoia Capital’s decision to back Nvidia. It wasn’t a smooth ride, and some might have thought it was the wrong call. But the takeaway here is that once a decision is made, you commit to it and make it work. Sequoia didn’t make the perfect decision—they made a reasonable one and then focused on making it right. In business, it’s often less about the perfect call and more about what you do after the decision is made.
Nvidia’s story isn’t about instant success or perfect strategies. It’s about persistence, admitting mistakes, and adapting to whatever comes next. Whether you're in tech or not, there’s a lot to learn from their journey—especially the importance of sticking with it and learning as you go.
Here is the link to podcast again, if you want to dive deeper yourself: Nvidia: The GPU Company (1993-2006).
— Yogi Sharma