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Nvidia Emerges as Leading Investor in AI Companies

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Nvidia is estimated to have been involved in six times as many deals as last year, with various partners from innovative new start-up projects in healthcare and energy to headline AI operations.

Nvidia has emerged as a leading investor in artificial intelligence (AI) companies following financial injections to assist start-up firms.

The world-renowned chipmaker revealed that it had backed “more than two dozen” companies over the last 12 months to consolidate its position as a market leader in AI processors.

The California-based superpower is estimated to have been involved in six more deals than last year, with various partners from innovative new start-up projects in healthcare and energy to headline AI operations.

It represents a deliberate, bold investment strategy from Nvidia as it outpaced Silicon Valley venture capitalists such as Andreessen Horowitz and Sequoia, according to Dealroom.

Win-win investment strategy

Mohamed Siddeek, Head of NVentures (Nvidia’s bespoke venture entity), spoke about the robust confidence underpinning their recent investment activity.

“Broadly, for Nvidia, the number one criteria [for investments) is relevancy.”

“Companies that use our technology, who depend on our technology, who build their businesses on our technology, I can’t think of a situation where we’ve invested in a company that did not use Nvidia products.”

Nvidia’s overall portfolio now includes Inflection AI and Cohere, said to be two of the biggest competitors to OpenAI, creator of ChatGPT.

Nvidia is vested in these companies, given that they are existing customers. It is a win-win situation as long as they continue to grow and evolve.

Another of its investments was in Mistral, a Paris-based AI start-up that received a €2 billion valuation earlier this month. Hugging Face and CoreWeave are two others, all users of Nvidia’s GPU chips or its software.

On remarks that the funding recipients are also receiving favorable conditions, Siddeek responded, “We don’t help anybody jump the queue.”

He refuted that any conditions were set on using Nvidia products as part of any investment but added that “we try to be as investee-friendly as possible.”

Nvidia’s H100 GPU chip is said to have established itself as one of the most sought-after products in Silicon Valley in recent times, enhancing its allure within the AI industry.

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