Most of the discussions about the future of neoclouds overlooks a key player: $NVDA. AI clouds and other enterprises are now almost as big a revenue channel for $NVDA as hyperscalers. This gives $NVDA a huge leverage against hyperscalers. Hyperscalers can’t afford to slow down $NVDA purchases to develop and ramp up their own chips as customers would not settle for inferior performance in the high-stakes AI race and go to neoclouds that offer the newest $NVDA chips. This is what keeps the whole industry on the $NVDA standard. So, survival of neoclouds are critical for $NVDA and it’ll do everything it can to keep them alive and thriving.
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