Why Does Slowing Nvidia Slow the AI Industry?

Chamath Palihapitiya says slowing Nvidia slows the entire AI industry and gives no rival a technical edge. It does not make another company's chips, racks, or networking better, does not improve HBM integration, and does not replace CUDA.

Demand is not elastic enough for buyers to switch to somebody else. The whole industry slows, and that helps nobody in the usual competitive sense. He calls the result a tragedy for AI. On the economy, he agrees with David Sacks that geopolitical interests are working to slow the United States, and a Nvidia slowdown will do it. The size of the hit is still unknown, but he calls it non-trivial because so much of the economy was already levered to AI. Nvidia is the Jenga block the rest of AI was built around.