NVIDIA is giving away the most powerful AI for free: a strategy that brings in billions
On June 4, 2026, NVIDIA released Nemotron 3 Ultra, the largest open AI model in the Nemotron 3 lineup. The company has made not only the model weights publicly available, but also the training data and the training methodologies themselves. The model is distributed under a free license and is designed for long-lived autonomous agents and complex reasoning.
Unlike closed flagships like ChatGPT or Claude, Nemotron 3 Ultra can be downloaded, fine-tuned on your own data, and run on your own infrastructure. The bet here is not on maximum intelligence, but on openness, efficiency, and control over the model.
Architecture: A Hybrid That Turns the Market Upside Down
Nemotron 3 Ultra is not just a "scaled-up transformer." It is based on a hybrid architecture combining three approaches: Mamba-2 layers, Attention layers, and Latent Mixture of Experts (Latent MoE). This mechanism directs each request only to the necessary "specialists" within the model.
Mamba-2 layers process long texts quickly and efficiently: their costs grow linearly with length, rather than exponentially like the standard attention mechanism. Attention layers, in turn, accurately retain large volumes of text in memory. Latent MoE compresses data before passing it to the experts, allowing each to work narrowly and precisely without requiring additional computation.
The model has approximately 550 billion parameters in total, but only about 55 billion are activated for processing each token. This allows it to think like a massive system while behaving like a much more compact one in terms of cost. Combined with a context window of 1 million tokens and a speed exceeding 300 tokens per second, this results in five to six times greater throughput and roughly 30% lower task costs.
NVIDIA's Strategy: Ecosystem as a Weapon
The main value of the release, according to industry analysts, lies not in the model itself, but in the ecosystem NVIDIA is building around its hardware. The logic is simple: whoever runs Nemotron almost certainly does so on NVIDIA graphics cards, fine-tunes it using its software tools, and deploys it on its software. Openness here is not charity, but a way to bring developers back to purchasing the company's hardware.
NVIDIA can afford this because its financial capabilities are incomparable to the costs of the model itself. With a market capitalization exceeding $5 trillion, training Nemotron 3 Ultra, which likely cost hundreds of millions of dollars, is a nearly negligible expense for the company. Graphics card sales more than cover the research, so NVIDIA can give the model away for free and still earn more than closed competitors charge for paid access.
The political context adds further weight to the release. An open American model can be inspected, modified, and run on private servers — making it attractive for countries building independent national AI, from Europe to Southeast Asia. No one can remotely disable such a model, and this is especially valuable given recent restrictions surrounding closed models.
Weaknesses and Prospects
Despite all its advantages, Nemotron 3 Ultra is not the smartest model on the market. In the independent Artificial Analysis Intelligence Index rating, it scored 48 points — the best result among open US models, but globally it lags behind leaders like Kimi K2.6 (54 points) and DeepSeek. Open models, according to analysts, trail closed ones by three to seven months.
But this gap, in my opinion, matters less and less if an open model is simply sufficient for real-world tasks. A bank deploying Nemotron 3 Ultra for loan processing on its own servers doesn't need flagship-level intelligence — it needs a model that can be fine-tuned on private data, kept within its secure perimeter, and not expose confidential information to outsiders.
NVIDIA's bet on efficiency rather than test records may prove more farsighted. With mass AI adoption, the operational cost of the model comes to the forefront, and one that is almost as smart but five times cheaper wins in real-world deployment. Analysts expect the open ecosystem to only strengthen: NVIDIA has the resources, motivation, and distribution channels to release increasingly powerful open models faster than any other company.
Expert Opinion: NVIDIA's open model is not just a technological step, but a strategic maneuver reshaping the AI market. If competition was once about the "smartest" AI, it is now about the "most convenient and cheapest" to operate. And here, NVIDIA, with its massive user base and control over hardware, has virtually no equal. In the long term, this could make it not just a chip supplier, but the chief architect of the world's entire AI infrastructure.