Nvidia invests $1 billion in AI startups and consolidates market leadership

Nvidia strategically invests in AI startups, thereby strengthening its market position and attracting regulatory attention.

1/4/2025, 1:12 PM
Eulerpool News Jan 4, 2025, 1:12 PM

Nvidia invested a total of 1 billion US dollars in artificial intelligence (AI) in 2024, further expanding its role as a key supporter of start-ups looking to benefit from the AI boom. According to Dealroom and company reports, the chip giant conducted 50 start-up financing rounds and several acquisitions, an increase from 39 rounds and 872 million dollars in the previous year.

The majority of investments went to "core AI" companies that require high computational power and therefore demand Nvidia's GPUs. While major customers like Microsoft and Google are increasingly developing their own chips, smaller AI companies could become more important for Nvidia in the future. Analysts estimate that these companies could generate more stable revenues in the long term.

In addition to start-up investments, Nvidia acquired several AI companies in 2024, including Run:ai and Nebulon, completing most acquisitions in one year. At the same time, the group strengthened its position in the industry through strategic investments in prominent AI providers such as OpenAI, Cohere, and Elon Musk's xAI.

Nvidia's aggressive growth, however, has raised regulatory concerns. Antitrust authorities in the US and Europe are examining whether the company's investments aim at securing market shares. Nvidia emphasized that investments are made independently of the use of its technology and are aimed at promoting the entire AI ecosystem.

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