Huang explains CUDA crushed NVIDIA's gross margins because it added cost without applications to justify premium pricing.
“And if people aren't willing to pay you for it but your cost went up, then your gross margins get crushed”
Huang describes how CUDA initially crushed margins by adding chip costs with no applications to justify premium pricing.
“CUDA added a ton of cost into our chips, but there were no applications. Right. And there are no applications customers don't value the product and they won't pay you a premium for it.”