Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu...
by bwfan123 on Saturday November 14, 2026 @08:39AM
(#50496945)
> Nvidia can't easily get out of the contracts with TSMC
So, supply was committed, but demand was not. That explains actions like these [1] to finance demand. The challenge for them from a business point of view is to dominate datacenter footprint with increased supply, while balancing demand with high margins - in the face of increased competition. I would guess that the marginal demand from startups and neoclouds is already inflecting downwards due to funding constraints and datacenter bottlenecks.
So, supply was committed, but demand was not. That explains actions like these [1] to finance demand. The challenge for them from a business point of view is to dominate datacenter footprint with increased supply, while balancing demand with high margins - in the face of increased competition. I would guess that the marginal demand from startups and neoclouds is already inflecting downwards due to funding constraints and datacenter bottlenecks.
[1] https://www.cnbc.com/2026/08/10/nvidia-wall-street-asset-man...