causal
Supply chain invests in Nvidia because of downstream demand
Nvidia's suppliers make large upstream investments specifically for Nvidia rather than competitors because they trust Nvidia has the downstream demand and reach to buy their supply and sell it through; without that demand reach, no one builds a supply chain for an architecture whose business churns are low.
causalpending
Speaker
Jensen HuangEvidence Quote
“Nobody is going to build a supply chain for an architecture if the business churns are low. Our ability to sustain the scale is only because our downstream demand is so great.”
Source
Dwarkesh Patel Podcast - Jensen Huang – TPU competition, why we should sell chips to China, & Nvidia’s supply chain moat— Dwarkesh Patel PodcastCreated: 6/13/2026, 3:37:32 AM
My Notes
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