NVIDIA Moves AI Server Designs to In-House for Full Vertical Integrations and Performance Leaving Vendors With Secondary Role
Quick Report
NVIDIA is reshaping the AI server market with its Vera Rubin product stack, set for volume production as the VR200 line in late 2026. Instead of supplying components to OEMs, NVIDIA will ship fully assembled L10 compute trays pre-populated with Vera CPUs, Rubin accelerators, memory, 800G NICs, 110kW power delivery, and liquid-cooling infrastructure. This vertical integration strategy shifts OEMs from core electronics design to rack assembly, power configuration, and cooling installation tasks.
The move is driven by extreme power requirements—Rubin silicon rumored to reach 2.3 kW TDP for high-end models—resulting in rack-level power consumption exceeding 250 kW, making custom cooling designs economically unviable for third parties. NVIDIA's standardization of cooling and power across two performance tiers, combined with increased network I/O density, reduces the feasibility of third-party replication. While this approach shortens development cycles and improves manufacturing yields through centralized production, it also limits hardware differentiation options for OEMs and hyperscalers. The shift will redistribute market value toward certified component makers and high-volume integrators, leaving branded OEMs with narrower margins and fewer opportunities for differentiation.
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Source(s)
- TPU
- @Jukanlosreve on X