Nvidia: Still Polishing the Brass, It Seems

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Right then. Meta Platforms – formerly known as ‘The Face-Book of Faces’, a name thankfully abandoned – has been making noises about artificial intelligence. Not just the polite, ‘we’re looking into it’ sort of noises, but the full-throated pronouncements of a sorcerer attempting to summon something genuinely clever. Billions of coins are being spent, of course. Everything these days requires a truly alarming number of coins. They’re building data centers, crafting large language models (which, let’s be honest, mostly seem to excel at writing slightly plausible nonsense), and generally trying to convince the world they’re not just selling ads with extra steps.

Now, Nvidia. The name itself sounds like something out of a particularly gloomy Eastern European fairytale. They make the… well, the bits that make the thinking happen. Graphics Processing Units, they call them. Fancy rocks that do sums very quickly. Meta is one of their biggest customers, naturally. It’s a bit like a dragon ordering a particularly large quantity of fire polish. But Meta isn’t entirely loyal. They dabble with Advanced Micro Devices – the AMD, as they’re known – and even attempt to forge their own magical components. A bit ambitious, perhaps. Like a goblin trying to build a cathedral.

It’s not just Meta. Amazon, too, likes to spread its coin around. Diversification, they call it. Sensible, in a way. Keeps the suppliers honest. Or at least, makes it harder for them to demand exorbitant prices for slightly improved enchanted widgets. This has, understandably, caused a bit of a flutter amongst the investment guilds. Will Nvidia’s dominance crumble? Will the market share be divided amongst a dozen lesser sorcerers? The prophets of doom were sharpening their quills. But then Meta did something… interesting.

The Early Days of Shiny Rocks

Let’s rewind a bit. Before everyone started talking about ‘AI’ (a term that sounds suspiciously like something invented by a marketing department), Nvidia was already tinkering with these ‘GPUs’. They saw the potential. They figured out that these shiny rocks could do more than just make pictures move. They started designing them specifically for the task. A bit like a blacksmith anticipating the need for enchanted swords. It gave them a head start. A considerable one. They built an empire of software, networking tools, and, crucially, expertise. They understood the magic before anyone else. And their GPUs remain, by most accounts, the most powerful on the market.1

They also have a habit of updating these chips annually. A relentless march of progress. It’s a bit like trying to outrun a particularly determined troll. Difficult, to say the least. Rivals like AMD are trying to catch up, of course. And Meta, Amazon, and others are attempting to forge their own components. Cheaper, they say. A tempting prospect. But often, as any seasoned investor knows, cheaper isn’t always better. Sometimes, you get what you pay for.2

Now, Meta’s recent move. They’ve signed a deal with Nvidia. A large deal. Millions of chips. GPUs, CPUs (more on that in a moment), networking, security… the whole enchanted caboodle. The precise value hasn’t been revealed, but one analyst suggests it could be in the ‘tens of billions’ of coins.3 A truly alarming sum. Enough to buy a small kingdom, or at least a very large collection of particularly grumpy gnomes.

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CPUs for the Data Centers: A Change in the Winds

Here’s the interesting bit. Meta is buying CPUs from Nvidia. Central Processing Units. The main processor in a computer. Traditionally, Nvidia has been a GPU specialist. This is a new direction. A foray into the CPU market for data centers. It’s a bit like a baker suddenly deciding to build bridges. Unexpected, but potentially lucrative. It suggests Nvidia is aiming to become a one-stop shop for all things enchanted computing. A dangerous ambition, perhaps, but one that could pay off handsomely.

And the really good news for those of us who like to see a solid investment? This deal demonstrates Nvidia’s leadership. Meta could have gone elsewhere. They could have doubled down on their own chip development. But they chose Nvidia. They’re putting their faith – and a considerable amount of coin – in Nvidia’s technology. Meta is deeply invested in AI, so they’re clearly looking for the very best components to power their ambitions. And once again, they’ve chosen Nvidia. A clear signal to the market, wouldn’t you say?

Does this mean other AI chip companies will fail? Of course not. There’s plenty of room for innovation. Plenty of opportunities for clever sorcerers to make a name for themselves. But this deal makes it clear that Meta’s own chip development isn’t about replacing Nvidia. It’s about diversifying, hedging their bets, and ensuring a reliable supply of essential components. And it’s highly likely that other Nvidia customers are taking the same approach. Diversifying while still relying on the AI giant. A sensible strategy, in my opinion.

All of this should alleviate concerns about Nvidia losing market share – and fuel optimism about their next chip launch later this year. A solid investment, wouldn’t you agree? A bit like investing in a particularly well-maintained dragon. Expensive, perhaps, but likely to yield a considerable return.

1

It’s a reputation built on a combination of clever engineering, aggressive marketing, and a healthy dose of sheer luck. Don’t underestimate the power of luck. Especially in the realm of enchanted technology.

2

The temptation to save a few coins is strong, but remember the old adage: “He who buys cheap, buys twice.” Or, as the goblins say: “A penny saved is a penny that can be spent on slightly less dubious potions.”

3

The exact figure is shrouded in secrecy, naturally. These things always are. It’s said that the contract was signed in invisible ink, using the tears of a particularly disgruntled accountant.

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2026-02-20 05:13