For three years, the cleanest sentence in the AI economy has been: everyone pays NVIDIA. Frontier Labs pays it. Hyperscalers pay it. Enterprises pay it through their cloud bills. Startups pay it through API costs that ultimately route to it. The single most reliable line item in the entire rebuild is the NVIDIA gross margin.
That is now changing. Not collapsing — changing.
Underneath the headline number that says NVIDIA’s revenue keeps climbing, the silicon layer of the stack is fracturing in three directions at once: hyperscalers are building their own chips for their own workloads, a generation of specialty silicon startups is attacking the parts of the workload the GPU was never optimal for, and a much smaller number of foundry and packaging providers are quietly emerging as the binding constraint that bounds all of it.
The most monopolistic layer of the AI stack is becoming the most differentiated.
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
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