Nvidia CEO backs record US startup surge amid macro uncertainty

Nvidia chief executive Jensen Huang told founders at Y Combinator’s Startup School 2026 that the current technological shift makes this the optimal era in history to launch a company. The executive, whose own firm was sketched out at a diner in 1993 and is now valued at roughly $4.7 trillion, said he is jealous of the opportunities available to new entrepreneurs. “This is absolutely the single greatest time to start a company,” Huang said in a conversation with Y Combinator CEO Garry Tan.

His remarks align with a surge in US entrepreneurial activity occurring despite macroeconomic and geopolitical headwinds. A record 3.23 million business applications were filed in the first half of 2026, representing a 12.1% year-over-year increase. This acceleration is happening while the broader economy remains sluggish and Middle Eastern conflicts continue to pressure global markets.

Huang argued that the rapid pace of AI-driven change actually lowers the barrier to entry because established knowledge depreciates quickly. He urged founders to stop overanalyzing market conditions and instead embrace a trial-and-error approach. “How hard can it be?” Huang said. “Let the suffering come to you a little bit at a time.”

That philosophy is rooted in Nvidia’s early history, when Huang realized the company had bet on the wrong graphics technology. With only a few hundred dollars, he purchased three technical textbooks at a retail chain and handed them to his engineers to learn the correct approach. “So long as you are able to confront the reality, so long as you are able to learn, the technology itself actually doesn’t matter,” Huang said.

However, venture capitalists and market participants should note that this high-risk environment carries steep failure rates. US Bureau of Labor Statistics data indicates nearly half of all businesses fail within five years. Even Huang, now 63, works seven days a week driven by a persistent fear of ruin, noting he has felt "30 days from going out of business" for 33 years. “The sense of vulnerability, the sense of uncertainty, the sense of insecurity—it doesn’t leave you,” he said.

Not all tech leaders share Huang's urgency to capitalize on the current disruption. Amazon founder Jeff Bezos recently advised young professionals to first learn operational fundamentals at established firms before launching their own ventures. Bezos argued that mastering basic skills like hiring and interviewing at a "best-practices company" ultimately improves a founder's odds of survival.