Amazon plans to sell Trainium chips externally, and increased US power supply has given hyperscaler chips time to mature and compete with Nvidia.

Four of Nvidia's major customers are now producing their own chips.

“Four of his customers now are producing their own chips. So I think OpenAI just announced the Halapino chip which is supposed to be twice as efficient in terms of what's per inference.”

The US bringing more power online than expected has delayed power scarcity becoming Nvidia's moat and given hyperscaler custom chips like TPU and Trainium more time to improve and compete.

“I think it's been probably the biggest problem for Nvidia over the last couple years is I think the US has actually brought a lot more power online than expected.”

Chinese AI company Z.AI is operating a 1-gigawatt data center running entirely on Chinese semiconductors with no Nvidia.

“There's there was something out just today that the Chinese Z.AI have some giant 1 gigawatt data center that's running entirely on Chinese semiconductors. No Nvidia.”