Jensen & Nvidia were never AGI / ASI pilled.

As a result they never seriously pursued frontier research for open models - which could have easily absorbed any excess compute they planned for.

On the other side their customers are rapidly becoming their competitors and will happily eat up spare capacity at TSMC if nvidia can’t fulfill its obligations.

Edit: to be fair there are several counterfactuals that could have played out negatively if nvidia decided to go into frontier research or go upstream like Elon and build their own fab. Jensen himself said they were completely focused on building general purpose compute and his bets had turned out to be right so far.