Nvidia: Victim of the Compute Market It Created?

Yes, it certainly looks that way. Nvidia spent years convincing the world that computing power, or "compute," is the new black gold of the digital age. They proved their GPUs are essential for artificial intelligence, making the sector irresistible to everyone.

Now, though, this brilliant move is somewhat backfiring. The market they shaped has become a Wild West, with countless players jostling for position. NVIDIA introduced the Hopper H100 series in 2022, setting the standard for high-end AI chips.

Nvidia's success raised the bar and shone a spotlight on a previously niche sector. This attracted investment and innovation, but also a flood of companies offering computing services. Many of these are getting rich without producing complex chips.

Think about those who rent servers or provide infrastructure: they make significant profits with simpler technologies. Nvidia must continue to innovate at breakneck speed, while others monetize the wave it generated. Isn't it a bit like the carpenter who builds the gold mine, while others sell shovels and picks?