Their strategy is to prevent open models from proliferating, so their massive investments in these AI frauds are not completely unwound.

That's my take, at least.

Nemotron is TERRIBLE, and purposefully so. It must be.

They cannot be THAT BAD at training AI models. I don't believe it.

I think almost the exact opposite. They want open models. Without credible open models, they only have a few customers, and those customers have leverage against nvidia. With open models, they have tons of customers, and nvidia has all the leverage.

Smaller customers are also less able to develop their own hardware and threaten NVidia's business.

Have you used Nemotron-3.5-lightening? I don’t use it as much as Poolside’s (excellent!!) Laguna XS 2.1 6bit, but the new Nemotron model is good.

I think NVIDIA does want small open models running on-prem to explode as a market! Lots of smaller GPU installations for companies who wisely want on-prem inference.

Of course NVIDIA will also keep making a ton of money selling to hyper scalers, but not forever: Chinese chips are getting better, Google, Microsoft, Amazon, etc. designing their own inference chips.

NVIDIA is handling this brilliantly.

I think this is a classic [Commoditize Your Complement](https://news.ycombinator.com/item?id=17047348) - Nvidia wants open models because their business is hardware and it's complement is AI models, so they want AI models to be commoditized so that hardware is the industry with leverage. OpenAI/Anthropic/etc want closed models so that the AI model development/data has leverage over the hardware providers.

Nvidia is trying to increase its customer base. Look at the Mag 7, Amazon, Google, Microsoft, and even Meta are all working on their own inference chips. I don't think they can completely ditch Nvidia for LLM training, but they can make their own chips for inference. I believe that's also why OpenAI made its own.

No one wants to pay the Nvidia tax

I believe NVIDIA's long term strategy will be to pivot from the data center to the public, and the public will utilize open models on NVIDIA hardware at home. This will come after the RAMpocalypse completes (when the new fabrication plants (China, Tesla/SpaceXAI/Intel) fully ramp up and start selling their RAM for cheap in the next few years). Data centers will be for training mostly.

I doubt Nvidia wants to be fully dependent on the success of two highly unprofitable companies that could implode at any moment. It makes much more sense for them to commoditize LLMs so that their target market grows to every mid-sized or larger company.

Maybe as an LLM it is, but I constantly use their streaming ASR model (called Nemotron Streaming) through Handy and it works wonderfully well.

The other way. Nvidia would love open source jevon paradoxed ai - that would run inference on their chips.

I think the idea that they’d purposely spend company time and resources making a bad model is an extraordinary claim, requiring extraordinary evidence. The more likely explanation is that they aren’t willing to distill from their own customers, so they are at a disadvantage.

Insane conspiracy theory. There's no incentive whatsoever for Nvidia to release weak models. If you bothered to pay any attention, they are aggressively trying to catch up. Whether they succeed, that's of course a separate question.