NVIDIA, a U.S. semiconductor company, has invested over $1 billion into AI startups and other tech firms in 2024.
The Financial Times reported on Wednesday that NVIDIA invested $1 billion in 50 startup funding and several corporate transactions, including mergers and acquisitions, last year. This investment surge represents a 15% increase from 2023 and more than 10 times the size of 2022.
While NVIDIA’s participation in funding rounds still lags behind Google’s, it has rapidly caught up with Microsoft and Amazon over the past two years. NVIDIA is the leading manufacturer of AI chips, and due to the AI craze, the company’s stock price increased by more than 170% last year. The Financial Times noted that NVIDIA has emerged as an important supporter of startups aiming to capitalize on the AI revolution powered by its chips.
Nvidia recently made a strategic investment with AMD, a rival of Elon Musk’s xAI, and it also participated in funding rounds for OpenAI and Cohere, Mistral, and Perplexity. The company also increased its acquisition of startups; it acquired Run:ai and AI software companies like Nebulon, OctoAI, and BrevDev this year. According to Dealroom, NVIDIA’s acquisition last year was larger than the total combined acquisition from the previous four years. The company’s investments span various sectors, including healthcare tech, search engines, gaming, drones, semiconductors, traffic management, logistics, data storage, and even humanoid robots.
As pressure on fair competition for AI technology grows in the U.S., Europe, and China, concerns about Nvidia’s influence on AI are growing. William Kovacic, former chairman of the Federal Trade Commission, stated that the competition authorities want to investigate whether industry leaders are aiming for a monopoly with such a significant investment. NVIDIA defended its strategy, saying it seeks to foster industry growth, support promising companies, and improve its platform for everyone.
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