Nvidia Moves Beyond Chip Sales to Build the Entire AI Factory

Nvidia has invested $3.5 billion into Taiwan’s MediaTek, letting customers design custom AI chips that still plug into Nvidia’s broader computing systems. It’s a clear sign of CEO Jensen Huang’s bigger goal: making Nvidia the backbone of AI infrastructure, not just a chip supplier.

A Shared Long-Term Plan

Around the same time, Anthropic committed $35 billion to rent Nvidia-powered computing capacity through Lambda, an AI cloud provider. Though different in structure, both deals push toward the same direction, expanding Nvidia’s reach across the entire AI pipeline.

Revenue Grows With Each Chip Generation

Nvidia says revenue per gigawatt of AI-factory power has climbed from $18 billion with Hopper chips to $25 billion with Blackwell, and now $40 billion with its newer Vera Rubin platform, which bundles CPUs, GPUs, and networking together.

Rival Chips Still Bring Nvidia Business

Through NVLink Fusion, competing chips can connect into Nvidia’s systems, meaning Nvidia profits even without supplying the main processor. Amazon shows this at scale, adding two million Nvidia GPUs while linking its own Trainium chips into Nvidia’s architecture too.