Discussion Nvidia to "invest" in OpenAI — will there be a new moat (like CUDA/TPU/PyTorch)

[marees]

I initially thought this is just a margin play (discount by 25%) — under pressure from custom ASICs of hyperscalers, Meta & Broadcom. Maybe Nvidia itself wants to become a hyperscaler & hence investing in OpenAi — instead of buying back shares with extra cash

But knowing Jensen (Nvidia has more software engineers than hardware engineers), is this an attempt to create a new moat vs Chinese rivals (deepseek/Huawei/smic), traditional rivals(AMD/ROCm) & open source (Oxmiq et al)

Also to cut off competition from Google TPU or a future evolution of the same ?

What do you think ??

 

[marees]

Context

https://twitter.com/x/status/1970850063556678138

https://twitter.com/x/status/1972338770868568139

 

[marees]

More context:

Arms race between hyperscalers, meta & now nvidia — who are all floating in cash reserves

now Oracle is forced to jump in — but they are using debt.
is this peak AI — to crush smaller competitors into bankruptcy

https://twitter.com/x/status/1972286230122602746

https://twitter.com/x/status/1966163598839001589