Nvidia CEO credits Sega's $5 million bet for saving company

1 min read     Updated on 16 Jul 2026, 12:24 PM
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Reviewed by
Naman SScanX News Team
AI Summary

Nvidia Corp CEO Jensen Huang attributed the company's survival to a $5 million investment from Sega in 1995. The funding followed the failure of Nvidia's NV1 chip and allowed the development of the successful RIVA 128. Nvidia is now valued at $5.14 trillion, with shares recently trading at $212.50.

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Nvidia Corp CEO Jensen Huang credited a $5 million investment from Sega in 1995 for saving the company from bankruptcy during a visit to Tokyo this week. Huang met with former Sega President Shoichiro Irimajiri to express gratitude for the funding that provided Nvidia with roughly six months of operating capital. The investment came after Nvidia's first graphics processor, the NV1, failed due to its reliance on curved surfaces instead of the industry-standard triangle-based rendering adopted by Microsoft Corp for DirectX.

The failed technology left Nvidia with only about 30 days of cash remaining. Huang proposed converting the money Sega owed under an existing contract into equity, warning Irimajiri that the investment would likely be lost. Irimajiri convinced Sega's board to approve the deal, which ultimately allowed Nvidia to develop the RIVA 128. This triangle-based graphics chip launched in 1997 and sold approximately 1 million units within four months, marking the company's turnaround.

Financial Impact and Growth

The strategic pivot funded by Sega's investment set Nvidia on a path to becoming the world's most valuable company. Sega later sold its stake for roughly $15 million. Nvidia's current market capitalization stands at about $5.14 trillion.

Metric Value
Sega Investment (1995) $5 million
Sega Stake Sale Value $15 million
RIVA 128 Units Sold (4 months) 1 million
Current Market Capitalization $5.14 trillion

Recent Stock Performance

Nvidia shares closed Wednesday at $212.50, up 0.33%. In after-hours trading, the stock slipped 0.58% to $211.28. According to Benzinga Edge Rankings, Nvidia ranks in the 98th percentile for Growth, reflecting strong short, medium, and long-term price trends.

How might this historical pivot influence Nvidia's current strategy for navigating potential technological paradigm shifts?

Could Nvidia's current market dominance make it vulnerable to the same type of disruption that nearly bankrupted it in the 90s?

Does this history of near-failure impact how Nvidia allocates capital to high-risk, high-reward R&D projects today?

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Japanese firms build AI with NVIDIA Nemotron

2 min read     Updated on 16 Jul 2026, 11:47 AM
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Reviewed by
Radhika SScanX News Team
AI Summary

Japanese enterprises and institutions are adopting NVIDIA Nemotron to build industry-specific AI models, addressing local language and workforce challenges. Key players like Institute of Science Tokyo, SoftBank Corp., and Stockmark are developing specialized models for finance, telecom, and manufacturing. Companies such as Avatarin, ENEOS Holdings, and NTT DATA are leveraging these tools for applications ranging from enterprise agents to R&D workflows.

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Japanese enterprises, startups, and research institutions are building industry-specialized AI models and applications with NVIDIA Nemotron open models, data, and libraries. This development accelerates the creation of AI tailored to Japan’s language, industries, and workforce. The adoption of open models allows organizations to customize, deploy, and govern AI they control, which is increasingly important as Japan addresses an aging population and workforce transition.

Institute of Science Tokyo developed its Swallow family of open foundation models using NVIDIA Nemotron datasets and the NVIDIA NeMo software stack. The Swallow models enhance Japanese language and reasoning performance while preserving core English, math, and coding capabilities. Enterprises are deploying these models for specialized use cases, including financial-document translation and asset-management report generation.

SB Intuitions Corp., the generative AI research subsidiary of SoftBank Corp., trained its Sarashina series of models using NVIDIA Nemotron, including the NVIDIA NeMo RL and Megatron-LM libraries. The Sarashina3 mini model has been selected by Japan’s Digital Agency for specialized AI use cases. Additionally, SoftBank Corp. has developed a large telco model using NVIDIA Nemotron to enable autonomous telecom network operations.

Stockmark released a specialized Japanese-language document-understanding model based on the NVIDIA Nemotron 3 Nano Omni model. The company is developing enterprise knowledge applications using NVIDIA NeMo Retriever and the Nemotron-Personas-Japan dataset. These applications serve customers in manufacturing, energy, and chemical industries through Japan’s Generative AI Accelerator Challenge national project.

Several Japanese enterprises are leveraging NVIDIA Nemotron to modernize services and improve productivity. Avatarin is using the models to develop Japanese-language speech and reasoning capabilities for enterprise AI agents. ENEOS Holdings is advancing agentic AI workflows for energy and materials R&D using NVIDIA Nemotron with the NVIDIA AI-Q Blueprint and NVIDIA ALCHEMI NIM microservices. NTT DATA augmented training data for its tsuzumi 2 model using NVIDIA Nemotron-Personas-Japan to improve question-answering accuracy. Hitachi is developing physical AI technologies using NVIDIA Nemotron and NVIDIA Cosmos open models to address operational challenges.

Sakana AI is integrating NVIDIA Nemotron into its Fugu model-orchestration platform. This integration expands the range of AI models Fugu can intelligently orchestrate to dynamically select the best model for each task. By routing requests to the most suitable model, Fugu helps developers balance accuracy, performance, and cost across multiple open and proprietary AI models.

NVIDIA Nemotron models are released with open weights, datasets, and recipes, providing transparency and control for domain-specific customization. Developers can use NVIDIA NeMo to customize and deploy models in environments that meet regulatory and data localization requirements. The models are available on Hugging Face, ModelScope, OpenRouter, and build.nvidia.com as NVIDIA NIM microservices, as well as through NVIDIA Cloud Partners and cloud service providers.

How will the adoption of these specialized Japanese AI models influence the country's ability to mitigate economic impacts from its shrinking workforce?

What regulatory challenges might arise as the Digital Agency and private enterprises deploy open models for sensitive government and financial use cases?

Could the success of Japan's industry-specific models prompt other nations to develop similarly localized open-source AI ecosystems?

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