Nvidia CEO Jensen Huang is likely not losing his mind over California’s proposed billionaire wealth tax measure.
Speaking to Bloomberg, Huang, who is world’s 8th richest person according to Forbes (at the time of publishing this report), said he “has not even thought” about the proposed levy, a stance that has set him apart from many other tech leaders who have criticised the idea and even taken steps to leave the state.
What did Huang say?
Huang said his focus is on building Nvidia and advancing artificial intelligence. When asked about the proposal, the world’s eight riches person said, “We chose to live in Silicon Valley, and whatever taxes they would like to apply, so be it… I’m perfectly fine with it.”
He added that the company’s choice to remain in Silicon Valley is largely driven by access to a deep talent pool crucial for AI innovation.
What is the proposed California billionaire tax?
The wealth tax in question is a proposed ballot initiative in California that would impose a one-time 5% levy on individuals with a net worth exceeding $1 billion.
The proposal, backed by the SEIU-United Healthcare Workers West, aims to generate roughly $100 billion over five years to fund healthcare, education, and food assistance programs. To qualify for the November 2026 ballot, it still needs to collect 870,000 signatures from registered voters. It could then be voted in or rejected by California voters.
Based on Forbes and Bloomberg estimates, Huang’s personal fortune, primarily derived from his roughly 3% stake in Nvidia, is well over $160 billion. If the wealth tax were enacted as written, Huang could face a tax bill in the multi-billion-dollar range.
How have other tech leaders reacted to the proposal?
Huang’s perspective sharply contrasts with reactions from several other prominent Silicon Valley figures. For example, Google co-founder Larry Page has already moved various business interests out of California, while Peter Thiel’s ‘Thiel Capital’ has opened an office in Miami amid the debate, according to the New York Post.
Critics, including high-profile investors, argued that a wealth tax could drive away talent and capital, according to Business Insider.
Billionaires from Palmer Luckey and David Sacks have also voiced their full-throated disapproval of the measure. As for celebrity attorney Alex Spiro, he has written a letter to California Governor Gavin Newsom on behalf of his wealthy clients and warned that they would “permanently relocate” if the tax comes to pass.