Most individuals consider established markets – places with plenty of customers and money to be made – when they think about launching a new product or beginning a business. However, Nvidia NVDA CEO Jensen Huang takes a different approach. He’s more interested in “zero-billion-dollar markets.” By adopting this unconventional strategy, Nvidia has become one of the most valuable businesses globally. What does he mean by this, and how can it be useful to you?
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A zero-billion-dollar market is one that doesn’t exist yet. Put another way, there are neither competitors nor customers because no one has considered it or dared to invest in it. This approach is risky because the results aren’t guaranteed, but they may be very lucrative if they succeed. Jensen Huang’s mission is to find and turn these unexplored niches into thriving industries.
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So, why does Jensen love these markets? The reason is simple: no competition. When you're the first to enter a brand-new market, you set the rules, define the product and have a chance to become the leader. Huang's experience with Nvidia shows this perfectly.
In the early 2000s, he bet big on "accelerated computing" with CUDA technology. This wasn't an established market – nobody was buying GPUs for AI computing because AI computing as we know it today didn't exist. But Huang believed in it and invested in it, and now Nvidia dominates the AI chip market.
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Entering a market that doesn't exist might sound like setting up a lemonade stand in the desert, but it's more strategic than that. Here's why:
- If there are no customers, there are no competitors either. You don't have to fight over market share with established giants.
- Being first means defining the standards and creating a strong brand identity.
- The market may be worth zero dollars today, but it could be worth billions tomorrow if you're right about its potential.
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You don't have to be a tech giant to use this approach. Whether you're an entrepreneur, a small-business owner, or just someone with a big idea, here's how you can apply Huang's philosophy:
- Think about areas in your life or industry with unmet needs or unsolved problems. These are potential zero-billion-dollar markets.
- Don't be afraid of small beginnings. When Netflix started, DVDs by mail seemed like a crazy idea. They were solving a problem no one knew they had. Now, they're a global powerhouse. Small, seemingly niche ideas can grow into major industries.
- Building something new takes time and patience. Nvidia didn't become a leader overnight – it took years of investment and belief in a market that no one else thought was viable. So, be prepared for the long game.
- Embrace failure and learn from It. Not every zero-billion-dollar idea will work, and that's okay.
As Huang puts it, “I'd rather be a market maker, market creator than a market taker. [It] is a good way to cause the company to think about how to go create something for the first time.”
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