- Nvidia has too much cash because of massive profits and has nowhere to reinvest them internally.
- Nvidia instead invests in other companies that use their gpus by providing them deals that must be spent on nvidia products.
- This accelerates the growth of these companies, drives further lock in to nvidia's platform, and gives nvidia an equity stake in these companies.
- Since growth for these companies is accelerated, future revenue will be brought forward for nvidia and since these investments must be spent on nvidia gpus it drives further lock in to their platform.
- Nvidia also benefits from growth due to the equity they own.
This is all dependent on token economics being or becoming profitable. Everything seems to indicate that once the models are trained, they are extremely profitable and that training is the big money drain. If these models become massively profitable (or at least break even) then I don't see how this doesn't benefit Nvidia massively.