Israel’s VCs See Opportunity for Challengers Amid Nvidia’s Leadership Turmoil
Jensen Huang’s resignation as Nvidia CEO has been met with concern in Israel, a country the company has described as its “second home.” Nvidia has been a major contributor to Israel’s economic growth forecasts in recent years, and the relationship has been mutually beneficial: Intel, Microsoft, and many homegrown startups also conduct a significant share of their R&D in Israel. Yet given Nvidia’s dominance in AI—its GPUs remain central to training and running large language models—many in the country are now wondering how much of a reshuffle will follow the company’s leadership crisis.
Nvidia’s Deep Roots in Israel
Under Huang’s leadership, Nvidia acquired Israeli chipmaker Mellanox for $6.9 billion in 2019 and used it as the foundation for its largest R&D facility outside the United States. The company also announced plans to build a multibillion-dollar campus in northern Israel. Today, Nvidia employs around 6,000 people locally.
“Jensen brought Nvidia to Israel with the acquisition of Mellanox, so there is a strong positive sentiment towards Nvidia and Jensen in Israel’s tech community,” Israeli repeat cybersecurity entrepreneur Pavel Gurvich told TechCrunch.
Succession Watch
The bigger question is whether Nvidia will remain as committed to Israel under new leadership. Huang’s line of succession is being watched just as closely by those hoping the company maintains its presence as by those who do not.
Those in the latter camp may be disappointed. In a 2023 interview now circulating on X, interim CEO Colette Kress—Nvidia’s CFO—said she typically started her day “with Israel meetings, and only then continue[d] to California.”
Kress may not remain in charge long-term, but the names floated for the role include two Israelis: Apple’s Johny Srouji and Nvidia’s Michael Kagan. Neither is at the top of the still-tentative list of possible successors.
An Opening for Competitors
Regardless of who is chosen, Huang’s successor will likely have less of a grip on Nvidia and the broader tech industry. Investors, however, do not expect demand for Nvidia’s products to fade.
“Slower decisions at Nvidia could give competitors an opening, but if that uncertainty also slows AI spending, they could end up with a bigger share of a smaller opportunity,” said Yanai Oron, a general partner at Vertex Ventures Israel.
Nvidia has accounted for a vast share of spending across the global AI industry. Under Huang, the company used its cash reserves to invest broadly—both in other companies and in its own next-generation chips.
What to Watch in 2026
As the AI industry matures in 2026, Nvidia’s leadership transition comes at a pivotal moment. The company’s GPU ecosystem remains deeply entrenched, but rivals are racing to offer alternatives for AI training and inference. Israel’s venture community sees both risk and opportunity: slower decision-making at Nvidia could create openings for challengers, particularly in specialized AI hardware and software. At the same time, any broader slowdown in AI spending would shrink the overall market—meaning competitors may capture a larger share of a smaller pie.
For Israel, the stakes are high. Beyond Nvidia’s direct employment and R&D footprint, the country’s tech ecosystem benefits from the “Nvidia effect”—the spillover of talent, capital, and credibility that comes with hosting one of the world’s most important semiconductor firms. Whether that effect persists under new leadership will depend on who takes the helm and how quickly they can set a clear direction.
via TechCrunch AI