At CES 2026, Jensen Huang once again reset the economics of AI factories. In particular, despite recent industry narratives that Nvidia’s moat is eroding, our assessment is the company has further solidified its position as the hardware and software standard for the next generation of computing. In the same way Intel and Microsoft dominated the Moore’s Law era, we believe Nvidia will be the mainspring of tech innovation for the foreseeable future. Importantly, the previous era saw a doubling of performance every two years. Today Nvidia is driving annual performance improvements of 5X, throughput of 10X and driving token demand of 15X via Jevons Paradox. The bottom line is that ecosystem players and customers must align with this new paradigm or risk a fate similar to that of Sisyphus, the beleaguered figure who perpetually pushed a rock up the mountain.