Former Sega President Invested $5 Million in Nvidia After Technology Failure

Former Sega president Shoichiro Irimajiri disclosed that he approved a roughly $5 million investment in Nvidia during the mid-1990s, even after founder Jensen Huang admitted the startup's graphics technology had failed. Irimajiri stated his decision was based on his confidence in Huang, not the product.

Irimajiri described Huang as "exceptionally rare" in 1990s Silicon Valley, characterizing him as a "genuinely honest, straightforward individual who never played games and never misrepresented what he believed." This transparency reportedly bolstered Irimajiri's conviction in Huang, despite the technological setback.

Huang recently returned to Tokyo to thank Irimajiri for the critical decision that helped steer Nvidia away from collapse. Irimajiri revealed that Huang himself informed Sega of the incorrect technical direction and requested to be released from the project, while still seeking approximately $5 million in support.

Sega confirmed that the funding was approved around 1995 or 1996, though precise details regarding whether the funds were provided through contract payments, an equity investment, or a combination, are no longer available. Irimajiri noted that Huang's admission increased his reassurance, even as his confidence in the chip itself waned.