The GPU economy represents the most concentrated point of value extraction in the AI stack. With NVIDIA controlling 92% of the discrete GPU market and 70-95% of AI accelerator revenue, understanding this layer reveals the structural constraints that cascade through the entire AI ecosystem.
The Cascade Effects — How GPU scarcity shapes every layer above
The Core Finding
This AI infrastructure buildout is fundamentally different from previous technology cycles because it is driven by excess demand, not oversupply.
Companies desperately need more AI compute than we can physically build. This creates structural constraints that ripple through every layer—from energy utilities to model labs to enterprise applications.
The race isn’t just about who has the best models anymore. It’s about who controls the computational substrate on which all models run.
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.
