Zenith.Lee𝕏

Nvidia chips are still scarce, even now. But to maximize that premium, Nvidia has to support the neoclouds. If the new Nvidia CEO turns even slightly skeptical about supporting the neoclouds, spot prices will take a hit. That will hurt neocloud margins. To avoid this, the neoclouds will have no choice but to reach out elsewhere. AMD, or the TPU camp. In other words, the neoclouds break free of Nvidia's grip, and Nvidia's dominance and influence both take a hit. That in turn means a hit to the massive order volume that underpins Nvidia's only moat, its control of the supply chain, and it means Nvidia's flywheel breaks. Jensen worked tirelessly to protect this flywheel. He pushed on many fronts to get a blind eye turned to neoclouds leasing capacity to Chinese hyperscalers, and he encouraged chip exports to China so that China would never forget the taste of the Nvidia sauce, working relentlessly to have China's AI ecosystem built on top of Nvidia. That way, even if the latest GPUs become hard to get inside China, there is still a reason to rent the same chips from overseas neoclouds. Keeping Chinese developers inside the Nvidia ecosystem was also a way of protecting neocloud utilization. Still, all of this was playing with fire along the edges of the gray zone, something deeply improper and dangerous in the eyes of Washington. Even so, Jensen did what was best for Nvidia. That cannot be denied. Jensen meant to wait until the neoclouds could order the next generation of GPUs on their own. He probably saw sharing risk with customers until then as being in Nvidia's interest too. What I want to know now is whether the next CEO can wait that long. According to the WSJ article... the current CEO does not seem to be that patient. I worry about an Nvidia without Jensen.