NVIDIA’s reliance on Big Tech is indeed ending, as under Jensen’s vision, Team Green is opting for a broader strategy, which is to cater to demand coming from “Sovereign AI” and will open up the next revenue frontier.

NVIDIA to Offset Big Tech’s CapEx Slowdown by Meeting Growing AI Infrastructure Demand From Nation-States

There’s often a debate in the industry on NVIDIA’s potential revenue sources, given that indicators suggest that Big Tech is exhausted when it comes to its spending on creating AI infrastructure necessary to fulfill customer demand. With that, the markets have perceived that NVIDIA’s revenue will gradually decline over time, but Jensen has already answered about this, particularly at the recent Computex 2025 keynote.

Apart from all prospects, such as physical AI and many more, one of the immediately benefiting ones is said to be “sovereign AI”, a term that hasn’t been mentioned in the mainstream markets too often, but it holds immense importance. Let’s talk a bit about what Sovereign AI actually is. This particular term is used to define a nation’s ability to control and manipulate AI as a technology, and it encompasses both physical and data infrastructure.

Sovereign AI has gained similar importance to what electricity, gas, or water infrastructures have for a nation, and well for NVIDIA, Jensen is about to bag in “hundreds of billions” from this opportunity. In the second half of this year, especially with President Trump taking over the White House, NVIDIA has seen a much more elevated stance on a “government-level”, not only because it is one of the most valued companies in the U.S., but Team Green is your go-to spot for all AI needs

The U.S. has realized that nations are looking to pour billions into creating AI infrastructure, and to capitalize on the hype, President Trump took NVIDIA’s CEO, Jensen Huang, on his first trip of this term to the Middle East, which shows that AI infrastructure should be the next area where billions are going to be invested in by independent nations.

Let’s talk about where NVIDIA will play a role in “Sovereign AI”. Being the primary supplier of data centers, or should I say “AI factories”, Team Green is pivotal in this segment, since the company has already started to forge partnerships with state-backed organizations to set up a sovereign LLM infrastructure. The company’s collaboration with Saudi Arabia’s HUMAIN AI is a multi-billion-dollar opportunity, where NVIDIA will provide thousands of advanced GPUs, national cloud platforms, and simulation environments for digital twin setups.

Not just Saudi Arabia but Middle Eastern nations like the UAE and Qatar are ready to pour in “billions” of oil money into investing in AI infrastructure, which allows them to ensure that they stay ahead of the West in terms of technological advancements. While the Trump administration has shown skepticism towards supplying these nations with high-end NVIDIA chips, primarily due to the influence of Chinese organizations in these regions, the point here is “Sovereign AI” is going to see a much more elevated status moving into the future, possibly beating physical AI and other prospects in the race.

Apart from the East, there’s massive interest from Europe as well, which is why recently, NVIDIA’s CEO was on a tour, attending multiple conferences and signing several deals. One of the more notable ones was NVIDIA’s partnership with Deutsche Telekom in Germany, building the nation’s first industrial AI cloud for European manufacturers, which would feature over 10,000 Blackwell GPUs.

NVIDIA’s CEO, Jensen Huang, believes that AI will evolve into a “$100 trillion” market in the distant future, with sovereign AI and physical AI as primary drivers. There’s much more depth into the AI bandwagon than what an average consumer can see, and while the industry is focused towards what the Big Tech is doing, state-backed organizations are the real deal for NVIDIA right now, which is why the firm is focused towards building relations with governments, to capitalize the maximum out of this segment..