Yes, so when the ground inevitably shifts below their feet (it might happen years from now, but it
will happen – open platforms always emerge and eventually proliferate), wouldn’t it be better for them to own that platform?
On the other hand, they could always wait for the most viable threat to emerge and then pay a few billion dollars to acquire it and own its direction. Google didn’t invent Android, after all…
> Google is a multi-sided platform that does lots of things for free for some people… That isn't the chip business whatsoever.
This is a reductionist differentiation that overlooks the similarities between the platforms of “mobile” and “GPU” (and also mischaracterizes the business model of Google, who does in fact make money directly from Android sales, and even moved all the way down the stack to selling hardware). In fact there is even a potentially direct analogy between the two platforms: LLM is the top of the stack with GPU on the bottom, just like Advertising is the top of the stack with Mobile on the bottom.
Yes, Google’s top level money printer is advertising, and everything they do (including Android) is about controlling the maximum number of layers below that money printer. But that doesn’t mean there is no benefit to Nvidia doing the same. They might approach it differently, since they currently own the bottom layer whereas Google started from the top layer. But the end result of controlling the whole stack will lead to the same benefits.
And you even admit in your comment that Nvidia is investing in these higher levels. My argument is that they are jeopardizing the longevity of these high-level investments due to their reluctance to invest in an open platform at the bottom layer (not even the bottom, but one level above their hardware). This will leave them vulnerable to encroachment by a player that comes from a higher level, like OpenAI for example, who gets to define the open platform before Nvidia ever has a chance to own it.