Nvidia’s (NVDA) own Big Tech customers are poised to capture a sizable slice of the AI chip market — a dynamic that could eventually dig into the chipmaker’s profit margins.
Tech giants have been making moves to bolster their in-house chipmaking businesses. ChatGPT developer OpenAI (OPAI.PVT) — a big customer of Nvidia’s chips by way of renting cloud space in Microsoft’s (MSFT) and CoreWeave’s (CRWV) data centers — said it will begin designing its own custom chips in partnership with Broadcom.
Meta (META) announced a plan in late September to acquire chip startup Rivos as it bolsters its own in-house chip efforts. Amazon (AMZN) said this summer that its massive data center project called Project Rainier, in which hundreds of thousands of its Trainium2 chips that will be used by AI developer Anthropic, is “well underway,” and analysts have said demand for its chips…
