Nvidia going for rivals’ jugulars as it plans to compete in $30 billion custom chip market — but is it a sign that the AI behemoth has reached its peak?

Nvidia currently controls about 80% of the high-end AI chip market, a position that has boosted its stock market value to $1.82 trillion. Tech giants such as OpenAI, Microsoft, Alphabet and Meta, have been racing to secure its chips to compete in the rapidly emerging generative AI sector.

In a bid to reduce energy consumption and potentially shrink the cost and time to design, some of Nvidia’s major customers have now started to develop their own internal chips for specific needs.