Nvidia’s Market Dominance Faces Potential Threat as Major Customer Strikes Deal

Nvidia's commanding 80% share of the AI chip market for cloud computing platforms may face headwinds following a strategic MOVE by one of its largest customers. The chipmaker's recent revenue surge—driven overwhelmingly by just six clients accounting for 85% of sales—now confronts new risks as these tech giants explore alternatives to reduce dependency.

The company's H100 and upcoming Blackwell GPUs currently set the industry standard for AI training, but hyperscalers like Microsoft, Meta, and Alphabet are aggressively developing in-house solutions. This vertical integration trend could erode Nvidia's pricing power and technological moat over time.

Market observers note the parallel to cryptocurrency mining's ASIC evolution, where early GPU reliance gave way to specialized hardware. For AI workloads, the transition may be slower but equally inevitable as cloud providers prioritize cost efficiency and supply chain control.