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I do think he's being genuine here.

On the other hand, is it good or bad for Nvidia when brilliant people start new tech companies?

He does sound genuine. A man who has stared into the abyss and isn't shy of telling it like it is. Internet lore suggests people like to work for him. Good for them, to have a self-aware, introspective boss.
What exactly is the "abyss" you're referring to here?
At the very least, the struggle of making things and building an organisation.
A throwaway line that he's using to pat himself on the back.