With just 10 customers accounting for 62% of revenue, DLocal has significant concentration risk. This makes Net Revenue Retention (NRR) a critical metric to monitor. A high NRR (e.g., 145%) indicates that existing clients are deeply integrated and expanding their usage, mitigating the risk of a single customer loss.

An enormous portion of revenue for cloud providers and other AI infrastructure players comes from just OpenAI and Anthropic. This extreme customer concentration creates a fragile system where the failure of one or two key players could trigger a widespread collapse.

The tendency for sales to dictate product development is less about a company being B2B and more about its revenue concentration. A B2C app with a few "whale" customers spending 150x the average would face the exact same pressures. The dynamic is driven by the disproportionate value of individual large deals.

Despite beating earnings, Microsoft's stock plunged after revealing that 45% of its future Azure contracts are tied to OpenAI. For a mature company like Microsoft, this heavy dependence on a single, unprofitable startup customer was a major red flag for investors, signaling significant concentration risk.

Jensen Huang strategically allocates GPUs to NeoClouds and new AI labs to prevent a world dominated by a few hyperscalers building their own custom chips (like TPUs). This ensures a diverse customer base and prevents NVIDIA's core products from being commoditized by a handful of powerful buyers.

Relying on a single large customer is a trap. They pressure you on price, consume your resources, and can leave suddenly, causing your business to fail. True stability and growth come from diversifying across multiple industry verticals with several customers in each.

NVIDIA's financing and demand guarantees for its chips are not just to spur sales, which are already high. The strategic goal is to reduce customer concentration by helping smaller players and startups build compute capacity, ensuring NVIDIA isn't solely reliant on a few hyperscalers for revenue.

NVIDIA's primary business risk isn't competition, but extreme customer concentration. Its top 4-5 customers represent ~80% of revenue. Each has a multi-billion dollar incentive to develop their own chips to reclaim NVIDIA's high gross margins, a threat most businesses don't face.

Large enterprise clients are often diversified themselves with multiple departments and divisions. A powerful de-risking strategy is to leverage your existing relationship as a proven vendor to get introductions and sell into these other parts of the organization, effectively diversifying your revenue stream within a single account.