Nvidia CEO Jensen Huang has publicly stated he’s “perfectly fine” with California’s proposed 5% billionaire wealth tax, dismissing concerns about the potential $8 billion levy in favor of focusing on building “the future of AI.” In an interview with Bloomberg TV’s Ed Ludlow that aired Tuesday, Huang revealed he hasn’t given the tax proposal a second thought.
The California wealth tax proposal, introduced by SEIU-United Healthcare Workers West, would impose a one-time 5% levy on the total net worth of approximately 200 billionaire residents in the state. The union estimates this would generate $100 billion over five years to offset anticipated budget cuts to healthcare, education, and food assistance programs. Unlike traditional income taxes, this wealth tax would apply to an individual’s entire net worth rather than annual earnings.
For Huang, currently the eighth-wealthiest person globally with a net worth of approximately $162.6 billion according to Forbes as of January 6, the tax would amount to more than $8 billion paid over five years. The vast majority of his wealth stems from his roughly 3% stake in Nvidia, which recently unveiled its new Vera Rubin chips at the Consumer Electronics Show.
“We chose to live in Silicon Valley, and whatever taxes they would like to apply, so be it,” Huang told Ludlow. He emphasized that Nvidia operates in Silicon Valley specifically because “that’s where the talent pool is,” suggesting the region’s advantages outweigh potential tax burdens.
Huang’s acceptance stands in stark contrast to reactions from other billionaires. Palmer Luckey and David Sacks have voiced strong opposition to the proposal. Google cofounder Larry Page reportedly converted many of his California assets to Delaware in December, meeting a year-end 2025 deadline that would exempt him from the tax if passed. Celebrity attorney Alex Spiro warned Governor Gavin Newsom in a letter that his wealthy clients would “permanently relocate” if the tax becomes law.
The proposal remains far from implementation, requiring 870,000 signatures to reach the November 2026 ballot, where California voters would ultimately decide its fate. The tax would only apply to billionaires who remain California residents as of January 1, 2026.
Key Quotes
I’ve got to tell you, I have not even thought about it once. We chose to live in Silicon Valley, and whatever taxes they would like to apply, so be it. I’m perfectly fine with it.
Jensen Huang, Nvidia’s CEO and the eighth-wealthiest person globally, dismissed concerns about California’s proposed 5% wealth tax that would cost him over $8 billion. His statement contrasts sharply with other billionaires who are threatening to leave the state.
We work in Silicon Valley because that’s where the talent pool is.
Huang explained why Nvidia remains committed to California despite potential tax increases, emphasizing that access to skilled AI workers and researchers outweighs financial considerations for the company’s future.
I’m trying to build the future of AI.
When asked about the wealth tax proposal, Huang indicated his priorities lie with advancing artificial intelligence technology rather than tax optimization, reflecting his focus on Nvidia’s core mission in the AI revolution.
Our Take
Huang’s stance represents a fascinating counterpoint in the ongoing debate about wealth taxation and tech industry geography. While many billionaires view California’s proposal as confiscatory and are already relocating assets, Huang’s commitment to Silicon Valley reveals a deeper truth about AI development: talent ecosystems matter more than tax rates. His willingness to pay over $8 billion demonstrates extraordinary confidence in Nvidia’s AI-driven future and the irreplaceable value of Silicon Valley’s workforce. This could signal that truly AI-focused companies will remain anchored to talent hubs regardless of tax policy, while those with more mobile business models may flee. The real test will be whether Huang’s perspective becomes the norm or the exception as AI companies balance geographic advantages against fiscal pressures.
Why This Matters
This story highlights a critical tension in the AI industry between talent concentration and tax policy. Silicon Valley remains the epicenter of AI innovation, housing the world’s leading AI companies and researchers. Huang’s willingness to accept higher taxes to maintain access to this talent pool underscores how essential geographic proximity to skilled workers remains, even in an era of remote work.
The divergent responses from tech billionaires reveal a potential fracturing of the Silicon Valley ecosystem. While Huang prioritizes staying near AI talent, others are already relocating assets or threatening departure. This could reshape where AI companies establish headquarters and conduct research in the coming years.
For the broader AI industry, California’s ability to retain or lose billionaire founders and executives could impact funding availability, job creation, and innovation velocity. If wealthy AI entrepreneurs and investors flee the state, it may affect venture capital flows, startup formation, and the region’s ability to maintain its competitive advantage in artificial intelligence development. The outcome of this tax proposal could set precedents for how other states approach taxing tech wealth.