adverts
Nvidia has emerged as a dominant player in artificial intelligence (AI) investments, committing $1 billion across various AI ventures in 2024, according to a report by the Financial Times (FT).
This aggressive strategy secured the chipmaker more deals than rivals Microsoft and Amazon over the past year.
The FT, citing data from Dealroom and regulatory filings, revealed that Nvidia’s investments spanned 50 startup funding rounds and multiple corporate acquisitions, marking a 15% increase from its 2023 outlay of $872 million across 39 rounds.
adverts
The move underscores Nvidia’s continued push to solidify its leadership in the AI ecosystem amid surging demand for its cutting-edge GPUs.
Nvidia’s GPUs, integral to AI-powered services across industries, generated $9 billion in revenue in 2024, driven by booming demand. This surge contributed to Nvidia becoming the world’s most valuable company in June, with a market valuation exceeding $3 trillion.
The majority of Nvidia’s investments targeted AI companies with high computing needs, many of which are also significant buyers of Nvidia’s GPUs.
This strategy aligns with the company’s efforts to expand its footprint in AI development and support startups that rely on its processors.
Despite its success, Nvidia faces challenges as some of its largest customers, including tech giants like Microsoft and Google, accelerate the development of their proprietary chips. This trend could reduce reliance on Nvidia’s GPUs in the future, shifting the spotlight onto smaller AI companies as key drivers of its revenue growth.
Nvidia’s notable 2024 investments included:
- Elon Musk’s xAI: A project aimed at building advanced AI models.
- Acquisition of Run:ai: A company specialising in AI infrastructure.
- Funding Rounds for OpenAI and Perplexity: Supporting Leaders in Generative AI.
The FT also reported that Nvidia executed more acquisitions in 2024 than in the previous four years combined, emphasising its focus on expanding its technological capabilities and market reach.
