Jensen Huang, CEO of Nvidia (Johannes Neudecker/Getty Images)

Over half of Nvidia’s AI direct hardware sales revenue comes from just three customers

In its Q2 earnings release, Nvidia revealed its “concentration of revenue” from six unnamed companies that purchase directly from the company.

Jon Keegan

8/28/25 1:39PM

Nvidia’s solid second-quarter earnings report showed how good it is to be the seller of the best pickax in the town with the big gold mine.

All of the big AI players are racing to pour hundreds of billions of dollars into ever-larger data centers to out-gigawatt their competitors in the space. And those data centers are usually stacked to the rafters with Nvidia’s powerful GPUs.

Meta, OpenAI, and xAI are all likely handing over many of those billions to Nvidia. For the second quarter, Nvidia reported $41.3 billion in revenue in its “Compute & Networking” segment — which includes all the gear it sells for data centers. That’s up 56% year on year.

Concentration of revenue

In Nvidia’s 10-Q filing, the company gave us a peek at who is buying all this gear, and how much — but without naming names.

“Customer A,” the largest single customer in this segment buying directly from Nvidia, represented 23% of sales for the second quarter, which works out to about $9.5 billion.

Which company could this be? We know that both OpenAI and Meta are currently building what might be the two largest AI data centers in the world. Meta’s $10 billion (or maybe it costs $50 billion?) Manhattan-sized “Hyperion” data center, currently under construction in Richland Parish, Louisiana, has been described by Meta CEO Mark Zuckerberg as “2GW+” but may scale up to 5 gigawatts, with several other multi-gigawatt projects on the horizon.

And let’s not forget OpenAI’s Stargate project, a $500 billion partnership with Nvidia, Oracle, and SoftBank that’s currently under construction in Texas. OpenAI recently announced a plan to develop 4.5 gigawatts of data center capacity at the Abilene, Texas, Stargate site.

The number of GPUs that will be needed to fill these data centers is absolutely enormous. We don’t have an easy way of knowing if OpenAI and Meta buy directly from Nvidia, but it’s hard to imagine that Customer A’s hardware won’t end up in one of the two megaprojects.

We’d be remiss not to mention Elon Musk’s xAI. xAI built its Tennessee “Colossus” data center in record time, and Musk has thrown out some crazy numbers regarding the number of GPUs he wants for his data center’s expansion.

Last month, Musk tweeted:

“The @xAI goal is 50 million in units of H100 equivalent-AI compute (but much better power-efficiency) online within 5 years”

Customers B and C aren’t messing around either, spending $6.6 billion and $5.7 billion, respectively, last quarter.

Together, Customers A, B, and C add up to 53% of second-quarter revenue for the Compute & Networking segment, or about $21.9 billion.

Is having so much revenue coming from so few customers a bad thing?

Not necessarily! The argument goes that having tight relationships with deep-pocketed customers allows a company to sell more stuff with less friction and more efficiency.

But the potential downside of being reliant on a handful of big spenders is that huge revenue streams could disappear overnight if one day a big customer starts using its own chips, or decides they are spending too much on AI data centers.

And, of course, there’s always the risk of a mercurial CEO just deciding to stop using your products for any reason.

For the time being, this doesn’t seem to be a problem. Everyone wants Nvidia’s latest chips, it can’t make enough of them, and everyone is planning to buy as many as they can get their hands on.

Tom Jones

hut’s off

10h

Yum! Brands might have found a potential buyer for Pizza Hut

Yum! is in exclusive talks with private equity firm LongRange Capital about a sale, per reports.

Hyunsoo Rim

hot dogs & half tanks

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Costco’s gas stations are breaking records as drivers seek cheaper fuel

Higher prices have pushed many members to the retailer’s pumps for the first time.

Max Knoblauch5/29/26

The Trump administration is reportedly planning a 50% made-in-America requirement for USMCA tariff relief

Qualifying for USMCA-related lower tariffs may soon require more US-made vehicle components, according to reporting by The Wall Street Journal.

The Trump administration is reportedly planning to introduce a 50% US content requirement for vehicles covered by the trade pact to receive lower tariffs. The content would be measured by cost, according to the WSJ.

There currently isn’t any US-specific requirement for those lower tariff rates, but in order to receive preferential tariffs, vehicles are must contain at least 75% regional content (components made in North America). Per Reuters reporting, the Trump admin is seeking to raise the regional requirement to 82%.

These reported plans are subject to change as the US negotiates USMCA terms with Mexico over the next few months.

Overall, Tesla will likely have the easiest time qualifying for any stricter requirements. The automaker’s vehicles contained the highest amount of US/Canadian content in 2025, according to American University research. Ford, GM, and Stellantis all scored lower.

Notably: the underlying government data that many domestic content measurements rely on intentionally combines US and Canadian components, so it’s difficult to know exactly how much of any given vehicle is specifically US-made.

Exclusive | Trump Administration Wants Autos Under USMCA to Be at Least 50% Made in America

These reported plans are subject to change as the US negotiates USMCA terms with Mexico over the next few months.

Tom Jones5/29/26

The $640,000 Luce makes the average Ferrari look like a bargain

Put aside the shape; put aside the smoothing out of Ferrari’s iconic sharp edges; put aside, even, the calls from former Chairman and President Luca Cordero di Montezemolo to “take the Prancing Horse off.” On the grounds of price alone, Luce detractors might have a point.

By now, many of us will have read the criticisms of Ferrari’s first fully electric vehicle, as the Luce — which was unveiled to the world earlier this week and promptly saw the company’s shares crash out in New York and Milan — gets subtly shaded by competitors online and not-so-subtly shaded by basically everyone else.

What makes all of this worse for Ferrari is that, even by the luxury car maker’s notoriously high standards, they’ve slapped a pretty hefty price tag on the Luce, and the company’s CEO, Benedetto Vigna, has already been forced to defend the €550,000 ($640,000) price point, saying yesterday that it’s “fair to pay for innovation,” per Reuters.

While Ferrari’s cars have been getting more expensive of late, as recently as 2022, Ferrari’s average revenue per car sold was around $340,000. At nearly twice that price, this new electric model is obviously proving a little much (visually, conceptually, and financially) for many loyal and long-standing fans of the Prancing Horse to stomach.

Ferrari’s EV push is testing what makes a Ferrari a Ferrari

Claire Yubin Oh

back in my day...

5/27/26

Temu’s US web traffic quietly recovered from last year’s tariff blow

Temu’s parent company’s stock is still under pressure though, both this year and this morning.