# Bank of America says open-weight AI models boost Nvidia’s chip demand

Digest AI · Hardware & Compute · published 2026-10-29T06:18:00Z

Canonical: https://digestai.news/story/bank-of-america-says-open-weight-ai-models-boost-nvidias-chip-demand

## Summary

Bank of America analyst Vivek Arya argues open-weight AI models—where weights are freely shared—do not cut costs for businesses but still require heavy computing power. The analyst notes these models now account for 71% of tokens on OpenRouter year-to-date, up from 27% in 2025, while cloud capital spending is projected to nearly double to about $1 trillion in 2026. This shift could redirect spending from model providers to infrastructure firms like Nvidia, which supplies the GPUs needed to run these models.

Arya’s analysis positions Nvidia as a key beneficiary, as open-weight models demand robust hardware rather than reducing it. Nvidia’s stock has risen 16.9% year-to-date but has pulled back 3.2% in the past month amid broader scrutiny of AI infrastructure spending and financing risks.

## Key points

- Open-weight models now make up 71% of tokens on OpenRouter year-to-date, up from 27% in 2025
- Bank of America says these models drive cloud spending to nearly $1 trillion in 2026, benefiting Nvidia
- Nvidia’s stock rose 16.9% year-to-date but fell 3.2% in October amid AI spending concerns

## Why it matters

Open-weight models’ growth suggests AI infrastructure spending will keep rising, reinforcing Nvidia’s dominance in AI hardware. Investors may see this as a tailwind despite broader market caution.

## Sources

1. [Open-Weight AI Models Are Still Expensive. That Is a Win for Nvidia Stock.](https://finance.yahoo.com/technology/ai/articles/open-weight-ai-models-still-131815842.html) (finance.yahoo.com, 2026-10-29)

Part of the developing story: [Bank of America Tracks AI Market Dynamics](https://digestai.news/thread/bank-of-america-says-bonds-may-hedge-ai-selloffs) (2 stories)

## Cite

Digest AI, "Bank of America says open-weight AI models boost Nvidia’s chip demand", 29 October 2026, https://digestai.news/story/bank-of-america-says-open-weight-ai-models-boost-nvidias-chip-demand

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