Fixed Pricing Builds Trust Over Decades
Insight
Nvidia deliberately avoids surge pricing during periods of extreme scarcity, even when demand far outstrips supply. Jensen points to the 30-year relationship with TSMC as an example: built on trust and consistency rather than contractual enforcement. By sacrificing short-term margin during scarcity windows, Nvidia secures long-term partnership stability and preferential treatment that compounds over decades.
Source Context
"Nvidia and TSMC don't have a legal contract. There's always some rough justice... sometimes I got a better deal, sometimes I got a worse deal. But overall the relationship is incredible and I can completely trust them." ā 55:13
Related Concepts
trust | long-term thinking | pricing strategy | partnership | delayed gratification | relationship capital