Adrian JohnsonTLDR:
– Nvidia’s startup investments have almost tripled in 2023, while other tech giants have decreased their investment activity.
– SoftBank and Tencent have also pulled back on their corporate venturing, but IBM and Amazon have increased their investments.
Nvidia has seen a significant increase in its startup investments, with its annual year-on-year investing growing by 280%, according to S&P Global. This is in contrast to other tech giants, such as Microsoft, Alphabet, and Meta, who have scaled back their investment activity. Facebook suspended all venture initiatives in 2023. SoftBank and Tencent also reduced their corporate venturing, while IBM and Amazon increased their investments by 100% and 13% respectively. Nvidia’s strong performance in 2023 has allowed it to build up a large cash pile, which it has been using to invest in AI-focused firms.
Nvidia participated in 38 funding rounds, making it the fourth-largest corporate venture investor of the year. The company invested $872 million in non-affiliated firms in the first nine months of the year, with the total value of rounds surpassing $5 billion. The company’s stock and revenue outperformance in 2023 has fueled its rise in the startup investment space. Its shares jumped roughly 225% during the year as its chips became integral to emerging AI technology.
Nvidia is primarily interested in emerging technologies that further its position in the AI space. It has focused on investing in firms that deal with AI infrastructure and generative AI development, as well as healthcare companies that apply AI in the sector. The company has already announced three startup investments for 2024, suggesting that its investment activity will continue to grow.
