Nvidia expands low-cost AI inference strategy with Nemotron and NVFP4

NVIDIA is pursuing a deliberate strategy of lowering the cost of AI inference through full-stack engineering, including models like Nemotron and hardware optimizations like NVFP4. The author argues that this focus on efficiency drives market expansion through Jevons Paradox, stimulating broader demand for AI hardware rather than undermining Nvidia's business model. However, this strategy carries risks from heavy infrastructure commitments and rising competition from major tech customers building their own chips. Open article →