Nvidia controls who succeeds in AI via allocation, shifting allies to enemies

matt_slotnick · x · 2026-08-27

The author highlights a deep dynamic in the AI market: success requires Nvidia allocation, meaning companies are effectively allowed to succeed (or not) by Nvidia. As Nvidia moves up the stack through M&A, more partners will shift from friends to frenemies, and potentially to enemies. He suspects a second-order effect: it may push companies into bed with Google who would otherwise never be expected to.

Related event: Nvidia's Compute Allocation Power Decides AI Firms' Fate(3 posts)→

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