OpenAI Chip Threatens NVIDIA Dominance Within Five Years

Nvidia's dominance in the market may be short-lived, according to macro investor Jordi Visser. In an interview on The Pomp Podcast, Visser stated that Nvidia's scarcity advantage will disappear entirely within five years.

This prediction comes after OpenAI unveiled its new AI-designed chip, Jalapeno, which has already shown superior performance compared to Nvidia's Blackwell in early tests. The Jalapeno chip is designed by OpenAI using artificial intelligence and boasts a lower total cost of ownership than Blackwell.

Nvidia's market capitalization of $5.31 trillion reflects its future discounted cash flows. If the market decides that Graphics Processing Units (GPUs) are optional in a decade, the value of Nvidia's stock will contract. Visser notes that OpenAI's existing and planned commitments represent approximately 12 gigawatts of NVIDIA compute through 2030, but argues that custom silicon could peel off even a quarter of hyperscaler workloads by 2031.

Nvidia's Q2 FY2027 report showed record-breaking revenue of $96.22 billion, up 105.8% year over year, with Data Center revenue of $89.02 billion and non-GAAP EPS of $2.22. However, shares dropped 4.57% on August 28, 2026, from $227.98 to $217.55.