Nvidia’s AI windfall fuels an expanding ecosystem play

Nvidia uses record chip profits to finance and accelerate the AI ecosystem, funding hundreds of billions in AI infrastructure and acquiring Hugging Face for $13B as it positions itself as an end-to-end AI factory platform. The move aims to sustain a self-reinforcing cycle where more compute spurs more demand for Nvidia’s chips, though critics warn the flywheel could be circular as rivals build their own chips. Nvidia’s data-center business remains the engine, accounting for the vast majority of revenue, with projections of substantial growth ahead.