Opinion: Hardware Will Subsidize Model Building
inductionheads · x · 2026-07-19
This is a brief take: Hardware will subsidize model training, and Nvidia will benefit from scaling laws.
It highlights a structural relationship within the AI industry:
- Upstream hardware and compute power continue to reap benefits
- Model building costs are underpinned by larger-scale infrastructure
- Profit distribution across the supply chain may skew toward the hardware side
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