But in 1996, it was three years old, facing layoffs and close to going out of business as a contract with a major partner — video game company Sega — fell apart. As part of the Sega contract, Nvidia needed to make chips for rendering 3D graphics on gaming consoles, Huang explained. Worse, during that period, Microsoft rolled out its DirectX software interface, which became a standard for gaming platforms — and it wasn't compatible with Nvidia's chips. Sega bought out its Nvidia contract, and used chips from Imagine Technologies' PowerVR for its Dreamcast consoles. It wasn't easy to admit Nvidia's mistake and humbly ask a client for understanding, Huang said: "These traits are the hardest for the brightest and most successful, like yourself."

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Persons: It's, Jensen Huang, Sega —, Huang, — Organizations: Nvidia, Sega, National Taiwan University, Microsoft, Windows, Imagine Technologies, Dreamcast, CNBC