Nvidia’s ( NVDA ) latest AI partnership with Microsoft ( MSFT ) and Anthropic underscores the chipmaker’s torrid pace of dealmaking this year, even as circular AI deals set off alarm bells for investors.
According to Pitchbook, Nvidia has invested $23.7 billion. Throughout 2024 Nvidia signs 54 deals worth $22.8 billion
Nvidia’s investments in AI companies total roughly $53 billion. USD and 2020-2025 consists of 170 deals – covering the entire AI ecosystem, from big language modelers like OpenAI (OPAI.PVT) and Cohere (COHR.PVT) to neoclouds (LaPVCRV) and the like.aWembda. which specializes in artificial intelligence services and competes with chipmaker Big Tech’s customers.
In a deal announced on Tuesday, Nvidia and Microsoft will invest up to $10 billion and as much as $5 billion, respectively, in AI developer Anthropic ( ANTH.PVT ). Anthropic to buy $30 billion
The partnership follows Nvidia’s $6.6 billion investment in OpenAI in October and a $6 billion investment in Elon Musk’s xAI (XAAI.PVT) in November, according to Pitchbook. Nvidia committed to investing up to $100 billion in OpenAI this September in a blockbuster deal that sent its stock soaring.
The pile of cash that Nvidia has poured into AI startups is a sign of how the chipmaker has been looking to strengthen its grip on the market after the 2022 launch of ChatGPT, a replacement for generative artificial intelligence. Nvidia is the dominant maker of artificial intelligence chips, with GPUs (graphics processing units) critical to training and running AI models.
But analysts and investors are beginning to question the nature of some of Nvidia’s AI investments in its customers. Tech stocks have sold off in recent days on worries about a market bubble fueled by artificial intelligence hype.
“It’s very nebulous,” Seaport analyst Jay Goldberg, who has a rare sell rating on Nvidia stock, said of the chipmaker’s investment in OpenAI. The investment, announced in September, is part of a partnership that would see OpenAI acquire a ton of Nvidia chips, with the AI developer pledging to use “at least 10 gigawatts” of computing power from Nvidia’s AI systems to train and run next-generation AI models.
Read more: How does Nvidia make money?
