Nvidia CEO Jensen Huang Backs California Wealth Tax

Nvidia CEO Jensen Huang has expressed support for California's proposed billionaire wealth tax, stating he is 'perfectly fine' with the potential financial implications. In a recent interview, Huang prioritized the Silicon Valley talent pool over tax concerns.

The proposed 5% tax on billionaire net worth aims to generate $100 billion for the state over five years. While Huang remains focused on AI development, other tech leaders are actively opposing the measure through asset relocation and threats of permanent relocation.

In an interview with Bloomberg%20TV&type=organization" class="entity-link entity-org text-green-600 dark:text-green-400 hover:underline cursor-pointer">Bloomberg TV, Jensen Huang addressed the proposed California billionaire wealth tax with a relaxed demeanor. When asked about the potential levy, Huang stated, "I've got to tell you, I have not even thought about it once." He emphasized that his decision to live in Silicon Valley is driven by business objectives rather than tax rates.

Huang elaborated on his commitment to the region, noting, "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 region's resources are essential for his work, stating, "We work in Silicon Valley because that's where the talent pool is." Huang noted that his current focus is on "trying to build the future of AI."

The wealth tax proposal targets the state's wealthiest residents. According to Forbes estimates dated January 6, Huang is the eighth-wealthiest person in the world with a net worth of approximately $162.6 billion. Most of this wealth is derived from his approximately 3% stake in Nvidia.

Based on these figures, the proposed 5% tax would amount to more than $8 billion for Huang, payable over five years. The proposal was initiated by the SEIU-United Healthcare Workers West union. Unlike an income tax, this levy applies to an individual's entire net worth. The union estimates the tax would apply to approximately 200 California billionaires and raise $100 billion to offset anticipated cuts to healthcare, education, and food assistance.

Huang's position contrasts sharply with other technology executives. Billionaires including Palmer Luckey and David Sacks have voiced strong disapproval of the tax. Some have already taken steps to mitigate potential impacts.

According to filings, Google co-founder Larry Page converted many assets from California to Delaware in December. This move appears designed to 'derisk' assets ahead of the potential tax. The tax would only apply to billionaires who remain residents of California on January 1, 2026. Consequently, Page's departure meets an end-of-2025 deadline.

Additionally, celebrity attorney Alex Spiro sent a letter to Governor Gavin Newsom on behalf of wealthy clients. The letter warned that these clients would "permanently relocate" if the tax is enacted.

The proposal is currently in the early stages and faces significant hurdles before becoming law. To appear on the ballot in November 2026, the initiative requires 870,000 signatures. If it reaches the ballot, California voters will have the final say on whether to approve or reject the measure.

The timeline is critical for residents. The tax, if passed, would only affect those still classified as California residents on January 1, 2026. This deadline has prompted some wealthy individuals to expedite their relocation plans.