• Jensen Huang publicly supports California’s proposed wealth tax, stating he is “perfectly fine” with higher taxes.
  • Huang emphasizes Silicon Valley’s talent pool as a key reason to keep Nvidia headquartered there, amid debates over tax competitiveness.
  • The comments come as some high-profile billionaires have left California, highlighting tensions over state policies and corporate residency.

Nvidia CEO Jensen Huang has urged people to stay in or move to California despite its high tax burden, defending the state’s appeal in a recent public appearance. Speaking at Stanford alongside U.S. Rep. Ro Khanna and former national security adviser H.R. McMaster, Huang said, “Move to California. Don’t leave. It’s the highest taxes in the world, but it’s OK—the weather is great.”

His remarks come amid rising scrutiny of California’s proposed wealth tax, which would impose a 5% one-time levy on individuals with net worth above $1 billion. According to people familiar with the matter, the proposal has sparked concerns about potential economic frictions and capital flight, with some tech figures reconsidering residency. Huang, however, emphasized the strategic value of Silicon Valley for Nvidia, citing the region’s deep talent pool and innovation ecosystem as primary reasons to remain.

“I am perfectly fine with higher taxes,” Huang said, according to sources at the event. This stance contrasts with recent moves by other billionaires, such as Google co-founders Sergey Brin and Larry Page (GOOGL), investor Peter Thiel, and venture capitalist David Sacks, who have reportedly left California amid the tax debate. Efforts to reach representatives for these individuals for comment were unsuccessful.

Nvidia, a leading AI compute and graphics company, has seen robust revenue and earnings momentum driven by demand for AI accelerators, with its market capitalization regularly ranking among the world’s highest. Huang’s comments underscore the ongoing tensions between California’s regulatory climate and its competitive advantages in tech talent and infrastructure. In the broader context, policymakers are negotiating the wealth tax proposal to address budget concerns, while opposition warns of potential disadvantages in attracting and retaining investment.

For employees and stakeholders, Huang’s position highlights California’s continuing appeal despite challenges like housing costs and regulatory complexity. Public reaction is mixed, with some applauding higher taxes for social programs and others cautioning about talent leakage. The situation is evolving as policy proposals progress, with short-term outcomes likely influencing sentiment but not immediately altering Nvidia’s footprint in Silicon Valley. Long-term, factors such as housing reforms and regulatory adjustments will shape whether more firms consider relocation or hybrid models, but Huang’s stance signals a preference for staying put regardless of tax changes.