Catenaa, Friday, May 23, 2025- Nvidia’s rise to center stage has been fueled by the spending of its fellow members of the so-called Magnificent Seven on chipmaker’s AI chips, Bloomberg said.
Bloomberg estimates show that Microsoft is the largest driver of Nvidia’s revenue, followed by Meta, Amazon, and Google parent Alphabet, while Tesla is Nvidia’s 15th largest customer.
Bloomberg also estimates that as of Nvidia’s 2025 fiscal fourth quarter, Microsoft spends roughly 47% of its capital expenditures directly on Nvidia’s chips and accounts for nearly 19% of Nvidia’s revenue on an annualized basis.
Bloomberg compiles its data from publicly available documents, such as company financial reports and presentations and news stories, and adjusts its numbers on an annualized basis for comparison.
Meanwhile, 25% of Meta’s capital expenditures go to Nvidia, and the company accounts for just over 9% of Nvidia’s annual revenue.
And that’s all direct spending on Nvidia. Big Tech also props up Nvidia indirectly. For example, Microsoft spends big sums renting data center capacity from cloud provider CoreWeave, which spends billions of dollars on Nvidia’s chips for those data centers. Microsoft accounted for 72% of CoreWeave’s revenue in the company’s most recent fiscal quarter.
Meta, Microsoft, Amazon, and Google are set to spend north of $330 billion, cumulatively, this year, fueled by their spending on AI investments.
Just three years ago, Microsoft spent less than 1% of its capital expenditures on Nvidia chips and similarly accounted for less than 1% of Nvidia’s revenue on an annualized basis, according to Bloomberg data based on Nvidia’s 2022 fourth quarter earnings.
Nvidia is set to report its fiscal year 2026 first quarter results on May 28.
Analysts tracked by Bloomberg expect spending on Nvidia’s AI chips for data centers will continue to decelerate.
Nvidia’s data center revenue is expected to jump more than 74% to $39 billion in the first quarter, according to Bloomberg consensus data. By comparison, data revenue rose a whopping 427% in the first quarter of Nvidia’s fiscal year 2025.
