Nvidia Tightens Its Grip on the AI Supply Chain, From Memory Chips to Data Centers

The battle for Nvidia’s next-generation chip business is intensifying, even as the company itself goes on an investment spree to lock down the broader AI ecosystem. Samsung is racing to close the gap with market leader SK hynix in the high-stakes memory chip arena, while Nvidia has simultaneously placed a $1 billion bet on data infrastructure software firm Vast Data.

Samsung’s HBM4E Gambit

Samsung is pushing hard to regain lost ground. The South Korean tech giant plans to produce initial samples of its new HBM4E memory chips as early as May. The logic chips will come from Samsung’s own foundry before being combined with DRAM by its memory division. After internal testing, the finished samples will go directly to Nvidia for validation.

The technical challenge is immense. Samsung’s HBM4E delivers 4.0 terabytes of bandwidth per second. To manage the heat generated by ever-denser AI systems, the company has deployed a new copper bonding technique that reduces thermal resistance by more than 20%.

This push comes as SK hynix currently dominates the field, holding roughly two-thirds of Nvidia’s orders for the upcoming Vera Rubin platform. That new AI architecture is slated for rollout in the second half of 2026, with major cloud providers like AWS and Google Cloud already lined up as initial customers.

Samsung is determined to avoid a repeat of its struggles with the previous HBM3E generation. The company must prove its early prototype can move quickly into mass production. For Nvidia shareholders, a broader supplier base for memory chips reduces concentration risk in the supply chain.

A $1 Billion Infrastructure Play

While Samsung fights for a place in Nvidia’s hardware pipeline, the chip giant itself is making strategic moves further up the stack. Vast Data has closed a roughly $1 billion funding round, pushing its valuation to $30 billion. The deal, confirmed on April 22, includes Nvidia alongside investors such as Drive Capital and Fidelity.

Vast Data develops an operating system for artificial intelligence that combines storage, databases, and computing power on a single platform. Nvidia is not just supplying hardware for these data centers — it is now acting as a central investor.

Should investors sell immediately? Or is it worth buying Nvidia?

The logic is straightforward. Amazon, Google, and Microsoft are all developing their own AI chips. By forging close ties with infrastructure providers like Vast Data, Nvidia ensures its graphics cards remain the industry standard, even as cloud giants explore alternatives.

Vast Data is growing rapidly. Revenue has tripled year-over-year, cumulative orders now exceed $4 billion, and committed recurring annual revenue stands at over $500 million. The funding round includes both primary and secondary shares, allowing early investors and employees to sell stock. CEO Renen Hallak is reportedly eyeing an initial public offering as early as the second half of 2026.

Record Numbers and a New AI Paradigm

The immense demand for AI hardware continues to drive Nvidia’s financial performance. Fourth-quarter revenue hit $68.1 billion, representing a 73% increase year-over-year. The stock currently trades at €172.20, up roughly 90% over the past twelve months and within striking distance of its all-time high near €180 from last November.

This deal also aligns with Nvidia’s broader strategic shift. CEO Jensen Huang is championing the transition to agentic AI — systems that don’t just generate information but independently complete complex tasks. All of Nvidia’s software developers now work with such agents, and Huang reports they are more productive than ever.

Investors are pouring billions into the sector. More than $280 billion has flowed into AI companies globally this year alone. Nvidia is leveraging this boom to cement its dual role: the dominant hardware supplier and a strategic investor shaping the next generation of AI infrastructure.

In the coming weeks, Samsung’s position will become clearer. If its HBM4E samples pass internal tests, a lucrative long-term contract with the world’s most important AI company could follow. Either way, Nvidia is building a fortress around its ecosystem — from the memory chips inside its servers to the software that runs them.