'So be it': California billionaire tax a non-issue for Jensen Huang

A brewing fight over a proposed California wealth tax is highlighting a rare split among tech billionaires, with Nvidia chief executive Jensen Huang signaling he is willing to pay up even as peers talk about heading for the exits.

Under a ballot initiative backed by a healthcare workers’ union, California residents with a net worth above $1 billion would face a one-time 5% levy on their assets, including stocks, artwork and intellectual property.

The hot-button measure, still in the signature-gathering phase, could appear on the November ballot and would apply retroactively to residents as of Jan. 1, 2026, with five years to pay.

While advisors to billionaire clients are few and far between, the proposal nonetheless raises fresh questions about how to plan around state residency, concentrated stock positions and the growing use of asset-based, rather than income-based, taxes.

As reported by multiple news outlets, Huang – whose centibillionaire status is tied to Nvidia’s dominant position as a supplier in the AI arms race – has taken a distinctly relaxed stance toward the idea.

“We chose to live in Silicon Valley and whatever taxes, I guess, they would like to apply, so be it,” he told Bloomberg Television, adding, “I’m perfectly fine with it. It never crossed my mind once.”

That puts him at odds with a group of prominent founders and investors who have warned of an exodus in the months since the billionaire tax's introduction late last year.

Some, including Palantir co-founder Peter Thiel and venture capitalist David Sacks, have announced new offices or a greater presence in states such as Florida and Texas, which do not levy state income taxes. Others, like Google co-founder Larry Page, have shifted corporate registrations and real estate holdings toward Florida even as details of the proposal are still being worked out.

Supporters argue that fears of a broad billionaire flight are overblown and that the measure is a reasonable response to budget pressures and looming cuts to health programs.

“What remains undeniable is the underlying unfairness of the current system,” Suzanne Jimenez, chief of staff for Service Employees International Union-United Healthcare Workers West, told the Guardian in an email. She said “regular working people pay higher effective tax rates than the wealthiest Americans” and framed the levy as a way to stabilize health care systems.

California governor Gavin Newsom, a Democrat, has broken with the union on this issue, warning that wealth taxes could undermine the state’s competitiveness.

“You can’t isolate yourself from the 49 others,” he said at the New York Times DealBook Summit, describing the US as “a competitive environment.”

For RIAs, the debate underscores how quickly state tax regimes can shift and how exposed billionaire clients can be to policy risk in a single jurisdiction. Advisors may need to revisit conversations about domicile, charitable giving, borrowing against appreciated stock, and the trade-offs of relocating to tax-friendlier states versus staying close to key talent hubs.

Even Huang, who has said Nvidia is in Silicon Valley because “that’s where the engineers are,” framed his own decision in business terms rather than ideology.

Asked if a billionaire tax might push him to leave, he replied: “Not this person. This person is trying to build the future of AI.”