Nvidia, the world’s premier high-performance GPU manufacturer, has firmly positioned itself at the center of the artificial intelligence revolution. Since the launch of ChatGPT a little over two years ago, Nvidia has seen an extraordinary surge in revenue, profitability, and cash reserves. As AI-driven technologies continue to transform industries, Nvidia’s stock price has skyrocketed, soaring more than eightfold, reflecting its pivotal role in powering the next generation of AI tools.
In response to this rapid growth, Nvidia has significantly ramped up its investments, particularly in AI startups. This surge marks a stark contrast to the previous four years, during which the company was involved in just 38 AI-related deals. Moreover, Nvidia’s formal venture capital arm, NVentures, has also seen a sharp increase in activity, engaging in 24 deals in 2024, up from just two in 2022.
The goal behind Nvidia’s increased corporate investing is clear: to expand and strengthen the AI ecosystem. The company aims to back startups that it deems “game changers” and “market makers,” helping to shape the future of AI by supporting the innovators at the forefront of the industry. While Nvidia is not the only tech giant making such investments, it has been the most active. Over the past two years, Nvidia participated in 83 deals, far surpassing Alphabet’s 73 and Microsoft’s 40, according to PitchBook.
Among the notable startups receiving funding from Nvidia is OpenAI, the maker of ChatGPT. In October, Nvidia invested $100 million in OpenAI’s record-breaking $6.6 billion funding round, which valued the company at a staggering $157 billion. While Nvidia’s investment was significant, it was overshadowed by larger investments from other backers, such as Thrive, which contributed $1.3 billion.
As Nvidia continues to leverage its growing resources to fuel the AI startup ecosystem, its influence over the future of AI innovation becomes ever more apparent. Through these strategic investments, Nvidia is not only expanding its portfolio but also reinforcing its dominant position at the heart of the AI industry.
Read Also: Perplexity AI Emerges as Strong Competitor in the AI Race, Challenging Tech Giants
