Nvidia’s great silicon showdown
The chipmaker’s biggest customers want a piece of its business. It is fighting back with a $500bn deal
The relationship between Nvidia and the hyperscalers—cloud giants such as Amazon, Google, Meta and Microsoft—used to be straightforward. Nvidia designed and supplied chips; the hyperscalers built data centres using them. For now, the two sides still need one another (see chart). Yet both are preparing for a future in which they lean on each other less.
A sign of the impending separation came on August 10th, when Nvidia announced a partnership with six of Wall Street’s biggest investors, including BlackRock and Goldman Sachs, to “mobilise over $500bn” for artificial-intelligence infrastructure. The aim is to help customers other than hyperscalers find the vast sums needed to build data centres. For their part, the hyperscalers are no longer content only to buy Nvidia’s chips. They are spending billions on designing their own.
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