$NVDA Is Building Its Own AI Ecosystem
$NVIDIA(NVDA)$ is doing more than selling GPUs. It appears to be building an alternative AI ecosystem that reduces its dependence on hyperscalers.
The problem is straightforward. $Meta Platforms, Inc.(META)$ $Amazon.com(AMZN)$ $Alphabet(GOOG)$ $Microsoft(MSFT)$ are huge customers, but they also want to reduce their dependence on $NVDA and gain more bargaining power over GPU pricing.
That explains $NVDA’s growing investments in $CoreWeave, Inc.(CRWV)$ $IREN Ltd(IREN)$ $NEBIUS(NBIS)$ $CRWV $IREN $NBIS. By backing AI infrastructure providers, $NVDA can help expand the AI cloud market beyond the hyperscalers, create a broader customer base and reduce their negotiating leverage.
🔥 Perplexity fits the same strategy.
People may dismiss Perplexity because its model isn't considered the strongest, but 100M DAUs is already a meaningful user base.
With $NVDA’s backing, Perplexity could potentially build AI products that take market share from Gemini, OpenAI and Anthropic.
And there’s an even bigger strategic benefit:
💰 More AI applications → more AI demand → more $NVDA GPUs.
In other words, $NVDA isn’t just trying to sell more chips.
It’s trying to build the ecosystem that creates the demand for those chips.
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