Comment Nvidia is in a high risk position (Score 1) 11
This means that a few good pieces of custom hardware have the potential to completely wipe Nvidia out. This is especially tough because everything is still consolidated into a handful of monopolies and duopolies that the couple of companies that are going to rule the roost for AI within the next few years will have more than enough resources to build their own custom hardware to do it. And they aren't going to like being dependent on an external company like Nvidia.
Nvidia may be able to stay ahead though by monopolizing engineers. It'll cost them literally hundreds of millions of dollars but it's doable.
I do Wonder though how long the wage arms race will last. Usually big companies like this don't like to get into bidding wars for talent and before long they are making deals at country clubs. Golf is a popular game for that because you're out in the open where it's harder for people to overhear what you're doing.