Liquid AI warns hardware makers must build intelligence layer or lose to NVIDIA

What was said

"If they want to sell more hardware, you know, and they, they're gonna up their stack from that kernel level optimizations. Those are kind of OSOC things, and they get into the intelligence layer. Now, does that mean they have to become a foundation model company? To some extent, yes. And they have to be able to train that intelligence layer themselves. And NVIDIA is a success example there, how this thing is actually paying dividends for them, building the Nimotron project. If you look at the other foundation model companies, the other hardware companies, they have not done this yet."

Liquid AI's CEO argues that semiconductor companies must move beyond kernel optimization and build their own foundation model intelligence layers to remain competitive, citing NVIDIA's Nematron project as proof this strategy works. He warns that AMD, Intel, and Qualcomm risk losing market share if they don't invest billions in training models optimized for their specific hardware architectures.