The silicon layer determines the cost floor for everything above it. Companies dependent on NVIDIA allocation are structurally price-takers. Google is a price-maker on its own silicon while also being a reseller of NVIDIA’s.
Google is the only hyperscaler with battle-tested custom AI silicon at scale AND a simultaneous NVIDIA partnership (shipping GB300-based A4X Max instances). This “Switzerland of compute” positioning means Google Cloud can serve customers who want TPUs for cost efficiency, GPUs for ecosystem compatibility, or both.
Price-Takers vs. Price-Maker
Structurally price-takers:OpenAI (100% NVIDIA-dependent, no custom silicon), Microsoft (NVIDIA + exploring Maia, supply-constrained), Meta (NVIDIA + custom MTIA, early efforts). All have their cost floor set by an external supplier, with margin compressed from below.
Price-maker + reseller:Google controls its own cost floor on proprietary silicon and offers dual optionality—can undercut OR upsell.
The Validation
10+ years TPU production at scale. 1M+ TPU chips committed by Anthropic alone. GB300 A4X Max NVIDIA partnership live. A unique dual-track position in the entire market.
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.
