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In AI chip markets, the performance of a given architecture has historically set the competitive hierarchy. Whoever runs the best silicon at scale captures the datacenter budget cycle.
Nvidia has held that hierarchy with dominant market share in AI chips. As competition picks up steam, the company is drawing more deliberately on a second, structurally different asset: capital.
Silicon leads narrow over time. Competing architectures close gaps, and when benchmark differentials shrink, the basis of competition shifts.
A vendor with deep capital can compete on dimensions that chip specifications do not reach. Nvidia's dominant position in AI chips is itself what generates the capital now being used to defend that position.
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