Re:Nvidia Allegedly Engineered Scarcity by Funding AI Startu...
by ajross on Saturday November 14, 2026 @10:10AM
(#50497639)
> Nvidia is willing to forgo present day profits for the strategic value of keeping its customer base diverse
That is precisely the opposite conclusion to the linked article though! They aren't "forgoing profits" if supply is constrained. Increasing demand increases prices and thus increases[1] profits. Which of course is exactly what we've seen in the market.
Your point would only work in an efficient market where they had competitors who would take the sale otherwise.
Basically: trying to sell this as NVIDIA being a Good Market Citizen and making sure everyone gets a chip is... well, it's kinda naive. No, they're really obviously making an extra buck on the market they already cornered.
[1] Superlinearly even, since the companies they fund can drive further investment based on the whale they landed.
That is precisely the opposite conclusion to the linked article though! They aren't "forgoing profits" if supply is constrained. Increasing demand increases prices and thus increases[1] profits. Which of course is exactly what we've seen in the market.
Your point would only work in an efficient market where they had competitors who would take the sale otherwise.
Basically: trying to sell this as NVIDIA being a Good Market Citizen and making sure everyone gets a chip is... well, it's kinda naive. No, they're really obviously making an extra buck on the market they already cornered.
[1] Superlinearly even, since the companies they fund can drive further investment based on the whale they landed.