OpenAI’s TPU Switch Exposes the Soft Underbelly of Nvidia’s AI Boom

Nvidia (NASDAQ: NVDA) warned in its latest Form 10-K that three direct customers individually generated 12%, 11%, and 11% of its total revenue, while an additional indirect customer—widely believed to be OpenAI—also topped the 10% threshold through reseller channels, highlighting how heavily the chipmaker relies on a small group of hyperscale buyers.

Now OpenAI is hedging its bets. Reports show that the ChatGPT creator has begun renting Google Cloud’s fourth-generation TPU chips, diversifying away from Nvidia’s flagship H100s in search of lower costs and faster scaling.

Google’s TPUs are application-specific and far thriftier on power. An A100 GPU draws roughly 400W, while a Cloud TPU v3 typically sips 120-150W for the same matrix-math workload. At hyperscale utilization, those watts translate into millions of dollars in annual opex.

Chinese start-up DeepSeek has already shown that judicious code-path pruning can chop inference costs by orders of magnitude, bluntly arguing that “hardware monopolies keep US models unprofitable.”

Against this backdrop, Nvidia executives have unloaded more than $1 billion in stock over the past year—$500 million in June alone as the share price touched fresh highs.


Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Silver’s Finally Breaking the System | Keith Neumeyer – First Majestic

The Best News for Gold Was the Drop! – Peter Grandich

McEwen Copper: The Los Azules Feasibility Study

Recommended

Steadright To Conduct Multi-Phased Exploration At Historic Goundafa Polymetallic Mine

Goliath Resources Drills 10.72 g/t Gold Over 7.83 Metres At Surebet

Related News

ChatGPT Can Impact 80% of US Jobs — Is it After Yours?

A new study looked into the early impact of large language models (LLMs) such as...

Thursday, March 30, 2023, 05:13:00 PM

Are Hard-Working Content-Farmers being replaced by AI?

And what effect could the monoculture they create have on our information supply? Our last...

Wednesday, May 10, 2023, 03:03:00 PM

OpenAI’s Soaring Revenue Shadowed by Billion-Dollar Losses, NYT Report Reveals

Artificial intelligence giant OpenAI is experiencing rapid revenue growth but facing significant financial challenges, according...

Monday, September 30, 2024, 10:56:00 AM

DeepSeek Assisted Military, Evaded US Export Controls, Official Says

Chinese artificial intelligence company DeepSeek has provided user data to China’s government and military while...

Tuesday, June 24, 2025, 02:52:00 PM

Is OpenAI Exploring Making ‘Responsible’ AI Porn?

OpenAI, the company behind ChatGPT, has released draft documentation outlining how it wants its AI...

Tuesday, June 11, 2024, 03:49:00 PM