Jensen Huang Is 'Perfectly Fine' with a Billionaire Tax, Shrugging Off Concerns It Might Scatter Silicon Valley's Talent Pool

Nvidia CEO Jensen Huang has stated he is 'perfectly fine' with California's proposed wealth tax on billionaires. In an interview with Bloomberg TV, Huang said the potential tax 'hasn't crossed my mind once.' The proposed measure would apply a one-time 5% levy on the assets of individuals with a net worth exceeding $1 billion.

The tax, introduced by the Service Employees International Union (SEIU), aims to raise $100 billion over five years for healthcare, education, and social services in California. It would target unrealized capital gains and other forms of wealth such as stocks and intellectual property, rather than annual income.

Critics of the proposal argue that it will lead to a mass exodus of wealthy entrepreneurs and investors, with some already moving assets or operations out of California. For instance, Google co-founder Larry Page has reportedly relocated significant assets to Delaware to avoid the potential tax.

Why Is Huang Staying in Silicon Valley?

Huang cited Silicon Valley's talent pool as his reason for staying. 'We work in Silicon Valley because that's where the talent pool is,' he said. This contrasts with other tech leaders who are reportedly exploring alternative locations for their ventures.

Huang's stance is unusual among Silicon Valley's billionaire class, many of whom have strongly opposed the initiative. Billionaires like Palmer Luckey and David Sacks have spoken out against the tax, calling it an unfair burden on wealth creation and innovation.

The proposed tax would affect approximately 200 billionaires in California, many of whom are tech entrepreneurs. For someone like Huang, with a net worth of $162.6 billion, the tax would mean a payment of over $8 billion spread over five years.

Supporters of the tax argue that the impact on the state budget is significant. The SEIU estimates that the $100 billion generated would help offset cuts to Medicaid and other public services. Opponents, including Governor Gavin Newsom, warn that the tax could drive away capital and talent, harming California's long-term economic position.

What Are Analysts Watching Next?

The proposed tax still requires 875,000 signatures to qualify for the November 2026 ballot. If it passes, it will retroactively apply to billionaires who were residents of California as of January 1, 2026. Analysts and investors are watching closely to see whether the tax gains enough public support and how it will affect the state's business environment.

Some tech leaders have already taken preemptive action, with venture capitalist Peter Thiel exploring the relocation of his firm's offices to Miami. These moves suggest that the proposal could trigger a broader shift in where high-net-worth individuals and their companies choose to operate.

Despite the debate, Huang remains unfazed. 'We chose to live in Silicon Valley and whatever taxes they would like to apply, so be it,' he said. His comments reflect a broader confidence in the enduring appeal of Silicon Valley as a center for innovation.