Discussion Nvidia is widening the R&D gap with its competitors

[marees]

Imo, some good points here:
👇

AMD's cashflow is not particularly high at the moment(1.9 billion vs 25 billion in revenue) and something like 500 million in additional R and D quarterly would negatively affect their stock by turning their quarters into losses. Also their cash pile is not particularly large at the moment at 4.5 billion. So overspending as you mentioned could turn their fortunes into misfortunes quite quickly as you implied. Keeping their stock high is very important to AMD and this year has not been good to AMD in this regard(peak of 210 vs 125 now with AMD reaching a 52 week low recently).

At this point, AMD wants to prop up their stock price by making their financial look healthier(hence the layoffs and shuffling of resources). At this point AMD is likely saving any cash on hand for things like financing the purchase of an AI startup buyout or something like that.

Compare this to Nvidia's 55 billion and it's truly pretty poor gamble considering Nvidia's crazy cashflow at the moment which are among the best in the industry(70 billion in net profit this year vs 120 billion plus in revenue if you include the upcoming quarter).

AMD retreat from the highend is a sign of the times with how expensive it is to produce videocards in terms of cost to produce along with R and D expenditure. It's not a growing market either which does not really justify further investment. People expecting AMD to do what is best for them and not what is best for AMD just shows how delusional some buyers are.

Looking at this thread and the Intel battlemage thread, people expect companies without boatloads of money to sell cards at cost or a loss in the name of marketshare or bring up bogus data(TSMC is not giving Intel a 40% discount when their margins are 57% and their captital expenditure is 35 billion annually[more likely a rumor to help get Pat fired]) to create the illusion you can make relatively large dies graphic card at 250 dollars and still make a profit even though cost of production of silicon has quadrupled vs 10-12 years ago.

 

[marees]

That's kinda neat. Carriers have to provision local cells with sufficient computing and electrical power to handle the worst-case traffic on each cell. That worst case rarely happens, so there's a bunch of unused and unexploited capacity in each tower support box. Nvidia and the AI-RAN alliance proposed that the support box house a Grace Hooper based server that runs a virtualization host that dynamically (or statically) allocates computing resources back and forth between the carrier tasks and a virtualized instance of one or more servers on the edge that can handle AI or control functions. This is a revenue multiplier for carriers as it allows the towers to be able to pay for themselves in contracted services revenue using otherwise unexploited resources.

Nvidia wants 6G to be made in America - with Nokia's help​

• Nvidia claimed it has built a U.S.-centric telecom computing stack
• It is investing $1 billion in Nokia to further development of AI-RAN solutions
• T-Mobile is planning to test the pair's technologies starting next year

To that end Nvidia also introduced its Aerial RAN Computer (ARC) Pro. The ARC Pro will run 5G, 6G and AI together at existing cell sites, with the goal of enabling operators to move from 5G to 6G via software upgrades alone.

“We’re going to create for the first time a software-defined, programmable computer that is able to communicate wirelessly and do AI at the same time,” Huang said.

“Beginning in 2026, T-Mobile will conduct field evaluations and testing of advanced AI-RAN technologies to ensure they meet the evolving needs of our customers as we move toward 6G,” T-Mobile CTO John Saw said in a statement.

https://www.fierce-network.com/wireless/nvidia-wants-6g-be-made-america

 

[marees]

Nvidia wants 6G to be made in America - with Nokia's help​

• Nvidia claimed it has built a U.S.-centric telecom computing stack
• It is investing $1 billion in Nokia to further development of AI-RAN solutions
• T-Mobile is planning to test the pair's technologies starting next year

To that end Nvidia also introduced its Aerial RAN Computer (ARC) Pro. The ARC Pro will run 5G, 6G and AI together at existing cell sites, with the goal of enabling operators to move from 5G to 6G via software upgrades alone.

“We’re going to create for the first time a software-defined, programmable computer that is able to communicate wirelessly and do AI at the same time,” Huang said.

“Beginning in 2026, T-Mobile will conduct field evaluations and testing of advanced AI-RAN technologies to ensure they meet the evolving needs of our customers as we move toward 6G,” T-Mobile CTO John Saw said in a statement.

https://www.fierce-network.com/wireless/nvidia-wants-6g-be-made-america

Nvidia, Nokia, T-mobile, & Dell get together

Nvidia adds AI peanut butter to Nokia's 6G network chocolate, throws in $1 billion​

The pair intends to develop cellular infrastructure for running edge AI workloads​

Nvidia's deal with Nokia, one of the largest telecom equipment vendors in the world, will give the company access to Nvidia's AI-RAN products, which make AI available to radio access networks to improve spectral efficiency (AI for RAN) and also will make AI available via cloud computing for wireless communications (AI on RAN). And Nokia will ensure that its 5G and 6G software runs on Nvidia hardware.

In conjunction with the partnership, Nvidia is rolling out Aerial RAN Computer Pro (ARC-Pro), a 6G-ready accelerated computing platform for telecommunication companies.

"ARC is built from three fundamental new technologies: the Grace CPU, the Blackwell GPU, and our Mellanox ConnectX networking designed for this application," said Huang during his keynote. "... Aerial is essentially a wireless communication system running atop CUDA-X."

Nokia and Nvidia say that they intend to work together on AI networking solutions, such as data center switching. This will involve Nokia's SR Linux software for the Nvidia Spectrum-X Ethernet networking platform and adapting Nokia's telemetry and fabric management system to Nvidia AI hardware.

T-Mobile US intends to work with the two companies as part of its effort to deploy 6G wireless technology, scheduled to begin testing in 2026. And Dell will also be participating through the provision of Dell PowerEdge servers to run the AI-RAN system.

https://www.theregister.com/2025/10/28/nvidia_nokia_partnership_6g/

 

[Saylick]

Nvidia has an agreement to buyout the core team at Groq and to license their IP for a cool $20B: https://www.cnbc.com/2025/12/24/nvi...p-groq-for-about-20-billion-biggest-deal.html

Since this isn't a complete acquisition, just the people and IP, which arguably are the most important parts of an acquisition anyways, it unfortunately allows Nvidia to skirt around the SEC and anti-trust regulations, a la Google hiring the Windsurf team.

 

[adroc_thurston]

Nvidia has an agreement to buyout the core team at Groq and to license their IP for a cool $20B: https://www.cnbc.com/2025/12/24/nvi...p-groq-for-about-20-billion-biggest-deal.html

pretty normal, AMD did the same recently.

 

[marees]

Nvidia has an agreement to buyout the core team at Groq and to license their IP for a cool $20B: https://www.cnbc.com/2025/12/24/nvi...p-groq-for-about-20-billion-biggest-deal.html

Since this isn't a complete acquisition, just the people and IP, which arguably are the most important parts of an acquisition anyways, it unfortunately allows Nvidia to skirt around the SEC and anti-trust regulations, a la Google hiring the Windsurf team.

Twitter user comment

https://twitter.com/x/status/2003989932524896326

 

[marees]

Nvidia has an agreement to buyout the core team at Groq and to license their IP for a cool $20B: https://www.cnbc.com/2025/12/24/nvi...p-groq-for-about-20-billion-biggest-deal.html

Since this isn't a complete acquisition, just the people and IP, which arguably are the most important parts of an acquisition anyways, it unfortunately allows Nvidia to skirt around the SEC and anti-trust regulations, a la Google hiring the Windsurf team.

Another comment

https://twitter.com/x/status/2003982212765794432

 

[marees]

This story covers over a year of research and may or may not pan out in the end, but it is quite real now.

Nvidia is looking to make a huge purchase that will reshape the PC and server landscape like nothing else has done since the computer was invented.

And let us say again, we are dead serious here.

https://www.semiaccurate.com/2026/04/13/nvidia-is-negotiating-to-buy-a-large-pc-oriented-company/

 

[marees]

This story covers over a year of research and may or may not pan out in the end, but it is quite real now.

Nvidia is looking to make a huge purchase that will reshape the PC and server landscape like nothing else has done since the computer was invented.

And let us say again, we are dead serious here.

https://www.semiaccurate.com/2026/04/13/nvidia-is-negotiating-to-buy-a-large-pc-oriented-company/

if an acqusition is being considered, Team Green would likely eye Taiwanese OEMs like MSI, given their decades of cooperation.

https://twitter.com/x/status/2043730701158363223

 

[Saylick]

Yet another case of Nvidia trying to compete directly with their distributors/suppliers.

HPE?

 

[marees]

HPE?

quiet possible

 

[LightningZ71]

NVidia recently overtook Apple in total market capitalization, but they are fully aware that their recent success is largely dependent on the AI D.C. bubble. They know that Apple's model is successful over the long timeline and want to emulate it where they can. Purchasing their own OEM allows them finish building a full stack competitor to Apple that has the muscle and resources to brute force this agenda forward. Using Linux, they could bring to market Nvidia PCs with a Nvidia OS experience, driven by Nvidia processors and GPUs. If they can scale this and get market buy in, which they are the most likely current candidate that could pull this off, they will help shield themselves from the upcoming collapse of the AI D.C. market.

 

[Saylick]

NVidia recently overtook Apple in total market capitalization, but they are fully aware that their recent success is largely dependent on the AI D.C. bubble. They know that Apple's model is successful over the long timeline and want to emulate it where they can. Purchasing their own OEM allows them finish building a full stack competitor to Apple that has the muscle and resources to brute force this agenda forward. Using Linux, they could bring to market Nvidia PCs with a Nvidia OS experience, driven by Nvidia processors and GPUs. If they can scale this and get market buy in, which they are the most likely current candidate that could pull this off, they will help shield themselves from the upcoming collapse of the AI D.C. market.

I hate the prospect of this.

 

[ToTTenTranz]

NVidia recently overtook Apple in total market capitalization, but they are fully aware that their recent success is largely dependent on the AI D.C. bubble. They know that Apple's model is successful over the long timeline and want to emulate it where they can. Purchasing their own OEM allows them finish building a full stack competitor to Apple that has the muscle and resources to brute force this agenda forward. Using Linux, they could bring to market Nvidia PCs with a Nvidia OS experience, driven by Nvidia processors and GPUs. If they can scale this and get market buy in, which they are the most likely current candidate that could pull this off, they will help shield themselves from the upcoming collapse of the AI D.C. market.

It'd be mighty fun to see Nvidia, who spent the past 4 years marginalizing their end consumer market for the server money, suddenly switch their focus to edge solutions for the end consumer market.

 

[marees]

Semi Accurate claims that “Nvidia is looking to make a huge purchase that will reshape the PC and server landscape like nothing else has done since the computer was invented” and that they were “dead serious” about this claim. If this claim doesn’t refer to a major PC manufacturer like Dell or HP, what kind of company could Nvidia be planning to purchase? With alleged PC and server market implications, it can’t be a peripheral maker or accessories manufacturer.

https://overclock3d.net/news/misc/nvidia-shuts-down-pc-maker-buyout-rumours/

 

[jpiniero]

It's probally something like HPE but Charlie doesn't understand that HP and HPE are two separate companies.

 

[marees]

Nvidia has issued a statement to Tom's Hardware, denying that it has been in talks for over a year to purchase a major PC manufacturer. The company said this in response to a rumor published by SemiAccurate claiming that the AI chipmaker is close to a decision point on whether the deal will push through or not. The tech publication said that it has spent over a year following this story, ever since it caught wind of the potential deal in late 2024. However, it also added that it was just talks and there’s no guarantee that a transaction will even materialize.

We have followed up with Nviida for a clarifying question as to whether Nvidia may be in discussions with a server OEM, as mentioned in the original report.

the rumor that Nvidia is looking to purchase a PC manufacturer is not actually a far-fetched idea. The rumor resulted in a jump of more than 5% for both HP and Dell — two major PC manufacturers whose product lines cover both PCs and servers.

https://www.tomshardware.com/tech-i...ngaged-in-discussions-to-acquire-any-pc-maker

 

[Golgatha]

I mean, nVidia's literal market cap is 10x that of AMD, so of course they're spending more on R&D. I would hope it's 10x more not just 2x.