In 1997, with Nvidia weeks from insolvency, Jensen Huang ordered mass production of the RIVA 128 graphics chip — a design that had never physically existed, tested entirely inside a simulator. Huang recalled on the Acquired podcast that the company had about six months of cash left and could afford only one tape-out, so it bought an emulation tool with roughly half its remaining funds to virtually prototype the chip. Nvidia laid off more than half its staff, cutting headcount from about 100 to 40, and was kept alive by a $5 million investment from Sega. The RIVA 128 shipped in August 1997 with just one month of payroll remaining, and it sold roughly a million units in its first four months, propelling Nvidia toward its 1999 IPO and eventually to a valuation of around $4.7 trillion.
NVIDIA CorporationNvidia's risky bet on the RIVA 128 chip, tested only in simulation, succeeded and saved the company, leading to its eventual dominance.
Sega Sammy Holdings Inc.Sega's $5 million investment helped keep Nvidia alive, but Sega is only mentioned as a past investor, not a current impact.