Bridger Pennington examines whether the AI market will consolidate into a few companies controlling everything, or splinter back into specialists. Microsoft is building its own chips, OpenAI is planning chips too, and Google is funding nuclear data centers. Pennington predicts Nvidia stays in chips, OpenAI in models, and others return to their lanes.
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All right, this is getting wild. Microsoft today announced they're going to bet on their own silicon chips. Oh, not these chips. These bad boys right here. Looks actually pretty cool. Now, this comes after OpenAI and Broadcom also said they're going to come out with their own chips. And Nvidia, who makes the chips, said we're going to come out with our own open-source AI models. Now, this is the 5-layered AI cake all the way down. What we're seeing right now is people in the chip layer jumping up to the infrastructure and model layer. People in the model layers dropping to the infrastructure layer. People even in the application layer like Coinbase today announcing that they actually trained their own open-source model that's way better at all these certain things. And anyways, you see companies in the application layer dropping down to the model. You've seen some companies like Google buy their own nuclear facilities. They hire others for chips, but they're building their own data centers. And then they're also developing Gemini, their own model, right? And they have their own applications like Nano Banana. There's a chance some of these companies are going for the full AI stack. Now, I do not know where this will land. Will someone like Google be able to do all of these? Will someone like Anthropic do all these? Or will Anthropic and OpenAI stay in the model layer? Will data centers stay in the infrastructure layer? Will Nvidia stay at the chip layer? I don't know. But right now, all these companies have so much excess cash. And seemingly they're willing to spend it to go down the line. What do you think? Is it a winner-take-all market, or do you think each one of these companies will kind of revert back to the mean and stay where they're at? Personally, I think they're gonna stick to what they're best at. I think Nvidia is going to try a few things, but they're going to come back to the chip layer. I think OpenAI and Anthropic are going to try a few things, but they're going to come back to the model layer. That's my take, but comment down below what you think.
