Nvidia funds supply chain buildout to lock in AI chip capacity

Nvidia is committing billions to expand substrate, co-packaged optics, advanced packaging and chip-testing capacity through 2028. The spending reserves capacity at nearly every stage of its AI accelerator supply chain.

Why it matters: Securing packaging and optics capacity, not just wafers, turns Nvidia's supply position into a moat rivals will struggle to match. Combined with its reported per-GPU software fee and investment in customers like Meta, it shows Nvidia shaping the whole market around its hardware.