AI Chip Startups Thrive by Soaking Up Nvidia's Spillover Demand
NaveenGRao · x · 2026-08-13
An industry insider reveals that the apparent boom in AI chip startups isn't driven by product innovation, but rather by the sheer demand for FLOPs and memory.
As long as these startups provide silicon that can run current models and have manufacturing capacity, they have business. They aren't outcompeting Nvidia on technology; they are simply absorbing the spillover demand that Nvidia cannot fulfill.
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