Jensen Huang Supports California's Wealth Tax, Differing from Other Tech Leaders

Nvidia's Chief Executive, Jensen Huang, expresses no concern over California's planned billionaire wealth tax, showing a rare stance as a tech leader.

In a conversation with Bloomberg TV's Ed Ludlow, Huang discussed the proposed 5% wealth tax, showing a relaxed attitude towards the potential financial demand. He remarked that his primary focus remains on advancing artificial intelligence, indicating that the tax plan hasn't preoccupied his thoughts.

"Truth be told, it hasn't crossed my mind," Huang admitted during the interview. "We've deliberately chosen to reside in Silicon Valley. If taxes are altered, I accept that. I'm entirely comfortable with it."

Huang highlighted the strong draw of Silicon Valley due to its concentration of skilled individuals, underpinning his commitment to the region.

Forbes ranks Huang as the globe's eighth-richest individual, with a fortune declared at $162.6 billion as of early January. His financial wealth is largely attributed to his 3% ownership in Nvidia, which recently unveiled the innovative Vera Rubin chip collection at the Consumer Electronics Show.

If the 5% wealth tax proposal were imposed, it would mean an obligation of over $8 billion for Huang, to be dispersed over a span of five years according to the proposal. This wealth tax initiative was tabled by SEIU-United Healthcare Workers West, aimed at compensating for expected reductions in numerous state services, such as health, education, and nutrition programs.

Unlike an income tax, a wealth tax targets an individual's whole net worth. It's estimated that this one-time levy would amass $100 billion for California over a period of five years, impacting the roughly 200 billionaires residing in the state.

The wealth tax is still in its infancy and requires the gathering of 870,000 signatures to qualify for the November 2026 ballot, where the tax proposal would face a public referendum.

Meanwhile, other billionaires like Palmer Luckey and David Sacks have voiced strong objections to the tax plan.

In a move to safeguard his assets, Google's co-founder Larry Page has shifted a substantial portion of his holdings from California to Delaware as a precaution against the potential wealth tax, adhering to an end-2025 cutoff timeline.

Attorney Alex Spiro has penned a warning to Governor Gavin Newsom on behalf of affluent clients, threatening relocation should the tax be enacted.

Nvidia has not offered any comments regarding the situation as yet.