Nvidia has solidified its position as a leader in artificial intelligence (AI) investments, committing a staggering $1 billion across multiple ventures in 2024, according to a report from the Financial Times (FT).
This aggressive strategy outpaced competitors like Microsoft and Amazon, securing Nvidia more deals and investments over the past year.
Citing data from Dealroom and regulatory filings, the FT highlighted that Nvidia’s investments spanned 50 startup funding rounds and several corporate acquisitions, reflecting a 15% increase from its 2023 spending of $872 million across 39 rounds. The company’s focus was on AI companies that require significant computing power, many of which are also key consumers of Nvidia’s renowned GPUs, pivotal in AI and machine learning applications.
In addition to funding startups, Nvidia’s efforts included notable acquisitions, such as its purchase of Run:ai, a company specializing in AI infrastructure, and significant investments in leading AI ventures like Elon Musk’s xAI and OpenAI. Nvidia also supported Perplexity, another key player in generative AI.
This investment surge aligns with Nvidia’s broader goal to expand its AI ecosystem and maintain dominance in the rapidly growing market for AI-driven technologies. Nvidia’s GPUs are essential for AI services across industries, contributing to a monumental $9 billion in revenue in 2024. This growth helped the company become the world’s most valuable company in June 2024, with a market valuation surpassing $3 trillion.
However, Nvidia faces increasing competition as major tech firms, such as Microsoft and Google, accelerate the development of their own proprietary chips, potentially reducing their reliance on Nvidia’s GPUs. Despite this, Nvidia’s strategic investments in AI startups and acquisitions are expected to secure its position as a central player in the future of AI technology.