How should the AI dividend be distributed? Jensen Huang: I do my best to give employees the highest salaries.
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Nvidia CEO Jensen Huang has publicly commented on the issue of profit distribution brought about by the AI boom, stating his usual practice is "to pay employees as much as possible."
On Tuesday, during the Computex expo in Taipei, Huang responded to a reporter's question, saying, "I think people should receive the highest possible compensation."
He added, "I do my best to pay employees, that's my approach, but that doesn't mean it's the right answer." This statement was prompted by a reporter's question about Nvidia partner Samsung Electronics' recent compensation agreement—Samsung reached an agreement with the union to grant chip engineers bonuses of up to $400,000.
Meanwhile, Nvidia also announced it will increase shareholder returns. Huang stated, the company plans to return at least 50% of its free cash flow to shareholders this year and in the future, further clarifying the company's priority regarding AI dividend allocation.
Pressure spreads across the AI industry chain
As the global wave of AI infrastructure construction continues to surge, from South Korea to Taiwan, the core beneficiaries of the AI industry chain are facing increasing pressure to share profits.
Samsung's compensation agreement with union members successfully averted a potential crisis that could have caused major disruptions. Another key Nvidia partner, TSMC, is facing similar pressure. TSMC CEO C.C. Wei hosted an internal employee meeting last week, assuring staff that the company's performance incentives would increase by more than last year. TSMC may also face further questioning about employee compensation at its annual shareholders' meeting this Thursday.
According to company documents submitted by Samsung in March this year, the average employee salary last year was 158 million won (about $105,000).
Jensen Huang refutes the "AI replacing jobs" theory
Aside from compensation issues, employee concerns about AI potentially replacing human jobs cannot be ignored. To this, Huang stated clearly on Monday that the idea of AI threatening jobs is "nonsense," emphasizing that AI will drive growth in revenue, profits, and GDP rather than erode job opportunities.
Jensen Huang's visit to Computex in Taiwan made him one of the most prominent guests at Asia's largest tech expo. He released multiple new products at the event, including a new AI chip for the PC market codenamed "Spark." At a relaxed two-hour media meeting, Huang spoke at length about topics such as AI and robotics.
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