High School Belle Fell in Love with Me

Chapter 646: Chapter 275: Negotiation with NVIDIA (Part 2)

Fortunately, this year’s teammates are completely different from last year. Li Yang has taken over the command position from last year, and the other three teammates are young and fierce.

After competing for three days, Li Yang gradually got into the groove.

During the one-day break, Li Yang and Bai Qing met Zheng Yi, the President of NVIDIA Asia-Pacific.

NVIDIA had a splendid year last year, but this year it’s quite disastrous.

So far, the stock price has plummeted from a high of nearly 300 US Dollars per share at the beginning of the year to just over 100 US Dollars.

The market value has also shrunk from more than 200 billion US Dollars to just 80 billion US Dollars.

The main reason is that last year Bitcoin surged, and the global demand for computing power graphics cards increased sixfold. Naturally, NVIDIA’s performance skyrocketed.

They even enjoyed a windfall at the beginning of the year, with the stock price rising from 190 US Dollars to 292 US Dollars.

But just as quickly as the boom came, it vanished.

With Bitcoin now dropping to 6,000 US Dollars, the demand for computing power graphics cards plummeted, leaving NVIDIA’s expanded capacity idle.

Expanding capacity in large enterprises is very risky. Once the market changes rapidly, no matter how much was previously earned, it might be lost afterward.

For example, Extreme Shadow Cars increased its capacity by 20%, costing billions. If the shipment falls short, not only would those billions be lost, but additional storage fees would also need to be paid.

No profitable company can endure such a situation.

NVIDIA didn’t just increase its capacity by 20%, but by 200%.

Imagine how much they’re suffering now.

Especially after hearing that Seven-Colored Rainbow graphics cards are selling exceptionally well domestically, they’re even more bewildered.

Seven-Colored Rainbow uses their technology, essentially acting as an OEM, needing to pay patent fees.

It’s somewhat like their sub-brand.

Yet, this company, with not the most advanced technology, is selling like hotcakes, shipping at least hundreds of thousands monthly...

Although gaming doesn’t demand a vast number of graphics cards, it’s still a billion-dollar market.

Thus, they reached out to Aurora Studio, and the two sides had a meeting in July.

However, at that time, they hadn’t determined the cooperation method, only discussing feasibility.

This time, Zheng Yi, the President of Asia-Pacific, personally came as a result of the previous conversation.

They learned that PlayerUnknown’s Battlegrounds is preparing for a major update, which will raise the hardware requirements for players...

This globally popular game will undoubtedly prompt a wave of hardware updates worldwide.

For instance, all internet cafes globally; if they don’t update the hardware, who would go online there?

The same goes for households; once a computer is set up at home, people are generally willing to spend to upgrade.

Without the previous exchange, there would be no Zheng Yi visiting this time.

Zheng Yi knows Li Yang has significant influence in Aurora Studio, which isn’t a secret in their eyes.

So, upon meeting, he proactively shook hands with Li Yang and said, "Hello, President Li. I’ve seen your brilliance in the arena. Only someone who genuinely loves games can create such an enchanting game."

"You’re too kind, President Zheng... Please have a seat."

Li Yang had long been waiting for NVIDIA to make a move.

He has already settled his stocks, with Wanliu Global Selection holding a stake worth 1 billion US Dollars, while Chen Peipei manages close to 2 billion US Dollars in Port City.

However, in Port City, the holdings are scattered across multiple accounts, unlike the more obvious Wanliu Global Selection.

After brief small talk, they got down to business.

Zheng Yi said, "President Li, I noticed Wanliu Capital holds nearly 1.5% of NVIDIA’s total shares. Thank you for your wife’s support for NVIDIA."

Li Yang was puzzled and said, "Is that so? I haven’t really been paying attention, as I’m not particularly interested in financial markets."

Zheng Yi brought out the prepared documents.

He didn’t plan to discuss business directly, knowing that whoever talks price first loses the advantage.

He was well aware that Li Yang wanted to cooperate with NVIDIA; otherwise, he wouldn’t be so prepared today.

Upon seeing the documents, Li Yang smiled and said, "Looks like she thinks the same as I do, both considering NVIDIA a good company."

"Of course!"

Zheng Yi, not holding back his pride.

If NVIDIA hadn’t expanded so much last year, he wouldn’t be feeling such unprecedented pressure this year and wouldn’t be in a hurry at all.

Good products will always sell; it’s just a matter of time.

But good products can’t just pile up...

Li Yang said, "So, I believe there’s some room for cooperation between us..."

Upon hearing Li Yang speak, Zheng Yi immediately smiled and said, "Of course, a great game needs excellent hardware. If Seven-Colored Rainbow can do it, so can we, as their technology is already two generations behind ours..."

"Indeed, we intend to find a better commercial partner, but we require some sincerity."

Zheng Yi waved his hand grandly and said, "NVIDIA can sponsor PlayerUnknown’s Battlegrounds with 20 million US Dollars annually!"

That’s quite a high offer.

However, Li Yang shook his head and said, "Sorry, this is far from what we expected."

"How could that be... President Li, I’ve shown considerable sincerity. We’ve never offered such a high price for any game."

Li Yang said, "President Zheng, do you think the advertising value of our PlayerUnknown’s Battlegrounds is only worth a mere 20 million US Dollars? To be honest, the sponsorship for this year’s World Championship is already confirmed, with the main sponsor fee being 120 million US Dollars, and we have three main sponsors! Other minor sponsors range from a few million to over ten million... With your 20 million US Dollars, not only would we have to offer a main sponsor spot, but we’d also need to promote your products, and even actively adapt the game..."