Nvidia's Success Creates Millionaire Employees, but at a Cost

How is it to work at Nvidia, an ex-employee tells: You may get rich, but ...

The recent surge in Nvidia's stock price has created a wave of new millionaires among its employees, but many are finding themselves too preoccupied with work to fully enjoy their newfound wealth. Nvidia has seen its stock value skyrocket over the past year. This growth has significantly boosted the value of employee stock options and grants, turning many workers into paper millionaires virtually overnight. However, the company's demanding work culture and intense competition can also take a toll on employees' well-being. How is it to work at Nvidia According to a report by Bloomberg, Nvidia's employees, under the leadership of billionaire co-founder and CEO Jensen Huang, are subjected to a high-stress and gruelling work environment. A former employee, who requested anonymity, described working at the company as feeling like being in a "pressure cooker." "One former employee, who worked in technical support for enterprise clients, said he was expected to work 7 days a week, often until 1 a.m. or 2 a.m. He said many of his former colleagues, especially those on engineering teams, worked longer hours," as per the report. Another female employee described a toxic work culture where tempers often flared up at Nvidia meetings, leading to yelling, shouting, and even fights. The woman, a marketing executive who left Nvidia in 2022, attributed her tolerance of the company's toxic work culture to the "golden handcuffs" she was offered. "said she often attended 7 to 10 meetings per day, each with more than 30 people involved, often punctuated by bouts of fighting and shouting. But she said she put up with it for two years, because of the "golden handcuffs" -- the opportunity for even more wealth", a former Nvidia employee told Bloomberg. Work culture at Nvidia Nvidia is known for its fast-paced and demanding work culture. Employees often face tight deadlines and high expectations. The combination of demanding work, long hours, and intense competition can contribute to burnout. Employees may experience physical and emotional exhaustion, leading to decreased productivity and job satisfaction. As per the report, Nvidia CEO Jensen Huang has 60 direct reports. He has implemented a policy requiring employees to regularly send emails to a centralised email ID, outlining the five things they are working on. Occasionally, Huang will respond to these emails, seeking further information or providing instructions. Earlier this year, Huang stated that he prefers to "push" his employees to their limits to achieve greatness rather than resorting to layoffs. In a recent 60 Minutes interview, Huang explained his demanding management style, stating, "If you want to do extraordinary things, it shouldn't be easy." The TOI Tech Desk is a dedicated team of journalists committed to delivering the latest and most relevant news from the world of technology to readers of The Times of India. TOI Tech Desk's news coverage spans a wide spectrum across gadget launches, gadget reviews, trends, in-depth analysis, exclusive reports and breaking stories that impact technology and the digital universe. Be it how-tos or the latest happenings in AI, cybersecurity, personal gadgets, platforms like WhatsApp, Instagram, Facebook and more; TOI Tech Desk brings the news with accuracy and authenticity.

'Pressure Cooker': Why Millionaire Nvidia Employees Are Still Working Until 2 a.m.

What is it like to work at Nvidia, the $3 trillion AI chipmaker with a storied work culture over 30 years in the making? Long-time CEO Jensen Huang said in an interview this year that he rarely conducts layoffs and instead prefers to "torture employees into greatness." It turns out, he might not have been joking. Being the AI chip brain behind ChatGPT and other popular forms of AI has led Nvidia -- and its vested employees -- to benefit financially from the AI boom. A June poll of over 3,000 Nvidia employees (out of around 30,000) showed that 76% were millionaires and one in three had a net worth of more than $20 million because of the company's growth. Since October 2022, Nvidia's stock has jumped over 1,000%. However, a Monday Bloomberg report revealed that though Nvidia's boom may have created millionaires, its work culture and expectations for those employees remain the same: It's a "pressure cooker." Related: Nvidia and the Magnificent Seven Have 'Immense Returns,' but Strategists Say There Are Risks Ten current and former Nvidia employees who spoke with Bloomberg detailed long working hours, yelling and fighting at meetings, and vying for the attention of a supervisor who could have more than 100 other direct reports. A former enterprise tech support employee claimed he worked every day, including weekends, until 1 a.m. or 2 a.m., and that his engineer coworkers worked longer hours. Other employees claimed to have at least seven meetings a day. Employees who worked less than the norm were called out at company-wide meetings. In December, Huang faced complaints from staff about their "semi-retired" peers. He responded by asking every employee to become the CEO of their time. Still, despite reports of a stressful work environment, Nvidia has had no trouble retaining employees. The company's sustainability report for fiscal year 2024 details that overall turnover was 2.7% compared to the industry average of 17.7%. Nvidia's low turnover rate could be attributed to the way it gives employees access to stock grants. The stock vests over four years, so an employee gradually gains ownership of the award. So it's in the employee's best interest to stick with the company to maximize benefits. Nvidia is also a famously "flat" organization, with minimal hierarchy, which could make the company an appealing choice. Huang has 60 direct reports.

Being an Nvidia multimillionaire isn't as enjoyable as you may think

San Francisco | It's a summer day in Santa Clara, California, and an assortment of luxury cars - Porsches, Corvettes, Lamborghinis - take up parking spots previously occupied by humbler models. Some have new paint jobs in the lime green from Nvidia's logo. And they are stuck where their owners want to be: at the office. Nvidia stock has gained 3776 per cent since the start of 2019 as the company benefits from selling the main chip necessary for artificial intelligence work, minting many new multimillionaires in the process. But the work hours are just as gruelling and high-stress, current and former employees said, leaving little time for the jet-setting, homebuying and leisure many can now afford. A culture problem is brewing, said the 10 people, who asked not to be identified for fear of retribution.

Nvidia employees become millionaires thanks to stock grants -- & they're working 7 days a week until 2 am without complaints

Nvidia employees are working relentless hours, often 7 days a week and staying up until 2 a.m., yet they're not leaving. The reason? Nvidia's skyrocketing stock grants have made many long-time employees millionaires, keeping them loyal despite the tough work environment. Nvidia CEO Jensen Huang is no stranger to headlines, often known for his intense work ethic. But this time, it's the Nvidia employees who are spilling the beans. Turns out, they are working 7 days a week and sometimes staying up until 2 am -- yet no one's rushing for the exit. Why aren't they clamouring to resign? Well, it's all about the money, baby! Based in Santa Clara, California, NVIDIA leads in AI hardware and software, with its semiconductors powering groundbreaking technology. Life at NVIDIA is nothing short of a grind. According to a former marketing employee who spilled the tea to Bloomberg News, her days were packed with up to 10 meetings -- each crammed with over 30 people. Credit: Freepik | Representational image And things can get intense. Bloomberg also reported that 10 current and former employees described the workplace as a pressure cooker, where meetings often turn into heated shouting matches. But Nvidia boasts a relatively low worker attrition rate. The reason is their pay check, which has a USP. Nvidia's employees receive stock grants that usually vest over four years. It is this stock compensation which is a big reason employees push through Nvidia's tough workload. Since 2019, the company's stock has shot up an incredible 3,776%, making many long-time employees, someone who's worked for even 5 years, millionaires. As Bloomberg reports, the parking lot is filled with luxury cars like Porsches, Corvettes, and Lamborghinis. One former engineer said that many employees who have been with the company for over 10 years could retire, but they stay for the next big payout when their stock vests. Credit: Freepik Let's be honest, many of us would trade some work-life balance for a shot at that kind of money! According to Bloomberg, while 5.3% of employees left last year, the turnover rate fell to just 2.7% after the company reached a $1 trillion market cap. In comparison, the semiconductor industry average turnover is 17.7%, showing that Nvidia's rewards are keeping people around. One former engineer said that many employees who've been with the company for over 10 years could retire, but they stay for the next big payout when their stock vests. Hey Indian companies, are you listening? Maybe it's time to borrow a page from Nvidia's book and throw in some more stock options for us!

Nvidia's stock surge mints new employee millionaires, but many can't yet enjoy their wealth

When the golden parachute becomes golden handcuffs instead. The stock surge Nvidia is enjoying, largely because of its dominance in AI, has created quite a few new millionaires among the company's employees. Unfortunately, many of them cannot yet enjoy their newfound wealth and still work long days and in stressful conditions, according to a recent Bloomberg report. Nvidia's stock price has risen more than 3,775 percent since 2019, meaning employees who receive stock grants as compensation have quickly become millionaires. You'd be mistaken if you thought they'd be living lavish lifestyles and retiring early. While these employees can purchase expensive sports and luxury cars and even have them custom-painted in the iconic Nvidia colors, those fancy cars spend more time in Nvidia's parking lot than anywhere else. Current and former employees say the work conditions at Nvidia include highly stressful days that don't end until one or two in the morning, seven days a week. According to the ten people who spoke to Bloomberg anonymously, those working on engineering teams often work even longer days. Nvidia CEO Jensen Huang is known for fostering a culture of overworking, saying that he prefers to "torture (employees) into greatness" rather than fire them. This might work in Nvidia's favor for retaining employees because of how the stock packages are doled out: they don't become vested until four years after they're granted. If a stock package isn't vested, the employee cannot sell it. Around the time the employee can sell one lot of shares, there's already another for the worker to wait on. Few companies in the tech industry share this same culture. In fact, there has been a cliche for years of a "rest and vest" culture. In this situation, employees sit around and play video games while they wait for their stock packages to vest. Not so Nvidia, though, where such an employee would face shame and ridicule from colleagues and managers alike. In this way, a compensation tactic that used to be looked on as a golden parachute could now become a set of golden handcuffs instead. The new multimillionaires are buying their fancy cars and multimillion-dollar homes, but many of them could wait several more years before they can enjoy them. How many of Nvidia's employees are holding out for additional treasure troves of stock to become vested? According to Bloomberg, in 2023, 5.3 percent of the company's employees left Nvidia. However, once Nvidia achieved its $1 trillion market capitalization, that attrition rate dropped by almost half to just 2.7 percent. To put this into perspective, the average turnover rate for the semiconductor industry is 17.7 percent. Despite the vast differences between the workplace culture at Nvidia compared to other semiconductor and Big Tech companies, most employees seem to approve of Huang's expectations and leadership style. His approval rating on Glassdoor has only dropped by a percentage point, to 97 percent, since last year.

Nvidia: May be millionaires, but work long hours, under 'pressure cooker' stress | Mint

Millionaires due to the steady rally of Nvidia shares, many employees say they cannot rest. 'Long hours, high stress and pressure cooker conditions' were among the complaints at Jensen Huang's tech company. As shares of Jensen Huang's Nvidia rallied to great heights on the artificial intelligence (AI) wave, it created many multi-millionaires among the employees. But luxury cars and padded wealth aside, there has been no rest, they told Bloomberg. Nvidia's stock has gained 3,776 per cent since 2019 giving many of its workers huge returns, which they say they cannot enjoy -- thanks to the long hours, high stress and pressure cooker conditions, the report added. Nvidia did not respond to queries on the report, Bloomberg said. A former employee from the technical team said he was expected to work seven days a week till 1-2 am, adding that his engineering colleagues worked even longer hours. Describing the environment he called it a "pressure cooker" with company meetings often building into fights. While he left in May 2024, the past employee said the thick pay made it "hard to leave" for many. Another past employee from marketing, who left in 2022, said she attended 7-10 meetings daily, each filled with fights and shouting. She said she stayed for two years because of "golden handcuffs" -- the money. Overall, on Glassdoor, employees seem to approve -- he scored 97 per cent on the job related social network, outperforming peers Alphabet (94 per cent), Apple (87 per cent), Meta (66 per cent) and Amazon (54 per cent), the report said. But the former marketing employee warned that his direct involvement also caused an environment of competition rather than cooperation, with people "fighting" to catch Huang's attention. "Look, I used to clean bathrooms, and now I'm the CEO of a company. I think you can learn it. I'm pretty certain you can learn this. And there are a lot of things in life that I believe you can learn, and you just have to be given the opportunity to learn it," he said. "And so it's tongue in cheek, but people know that I rather torture them into greatness. So, I would rather torture you into greatness because I believe in you. And I think coaches that that really believe in their team, torture them into greatness. And oftentimes, they're so close, don't give up. They're so close to greatness," Huang said.

Nvidia employees can work 7 days a week until 2 a.m. -- but few leave...

Employees at AI chipmaker Nvidia are expected to be at their desks seven days a week and often until 2 a.m. -- but workers are loathe to leave due to the company's generous pay package, according to a report. Ten people who either worked at the company or are still employed at the firm described the environment as a pressure cooker in which meetings often descend into shouting matches, according to Bloomberg News. A former marketing employee at Nvidia told Bloomberg News that she would often attend up to 10 meetings per day -- each of them involving more than 30 people. The meetings would be characterized by shouting and fighting, but employees put up with it because of the "golden handcuffs," according to the ex-staffer. Nvidia, the Santa Clara, Calif.-based maker of semiconductors used to power artificial intelligence technology, boasts a relatively low worker attrition rate due to the fact that its employees are given stock grants that typically vest over a four-year period. Since 2019, Nvidia's stock has surged by 3,776% -- meaning that employees who have been working at the company for the past five years are likely to be millionaires. The company has become the dominant chipmaker as demand for its semiconductors has grown in parallel with the rise of artificial intelligence. According to Bloomberg News, the stock compensation package is a powerful incentive for employees to withstand the grind and remain at the company. Last year, 5.3% of employees left Nvidia. But after the company's market capitalization exceeded $1 trillion, the rate of worker attrition fell to just 2.7%. In the semiconductor industry, the rate of employee turnover is much higher -- 17.7%, according to Nvidia. A former engineer at Nvidia told Bloomberg News that those who have been with the company for a decade have more than enough money to retire, but instead are choosing to work more because of a larger windfall that awaits them when the next stock grant vests. The former engineer also said that he would often hear newly minted multimillionaire employees at the company brag about new vacation homes they were buying. He told Bloomberg News that it was also routine to see many of them snap up tickets for events such as the Super Bowl and the NBA Finals. Nvidia's employee parking lot is also full of high-end cars such as Porsches, Corvettes and Lamborghinis, according to Bloomberg News. A real estate agent based in nearly Palo Alto, Calif. told Bloomberg News that he has worked with several Nvidia employees -- some of whom make down payments of between 40% and 60% on homes worth millions of dollars. Jensen Huang, Nvidia's co-founder and chief executive officer, told CBS's "60 Minutes" in an interview that he pushes employees hard because "if you want to do extraordinary things, it shouldn't be easy."