The GPU giant strengthens its ecosystem with strategic investments but faces increasing regulatory scrutiny in key markets.
Nvidia closed 2024 with an investment of $1 billion in startups and companies related to artificial intelligence (AI), solidifying its role as a key player in the expansion of the global AI ecosystem. According to a report from the Financial Times, the company participated in 50 funding rounds and corporate deals, a 15% increase compared to the 39 rounds in 2023, when it invested $872 million.
A focus on intensive infrastructure and large projects
Most of Nvidia’s investments were centered on companies with high computational infrastructure demands, many of which are already using its chips to train and run AI models. One of the standout deals was its participation in the Series C round for xAI, founded by Elon Musk, which raised $6 billion. This funding will allow xAI to acquire up to 100,000 additional Nvidia H100 GPUs, doubling the capacity of its supercomputer located in Memphis.
Among the other startups supported by Nvidia are influential names in the sector such as OpenAI, Cohere, Mistral, Perplexity, and CoreWeave, all focusing on the development of language models and advanced AI applications.
Growth amid competition
With its investment strategy, Nvidia is outpacing technology giants like Amazon and Microsoft in venture capital activity. However, Google led this area in 2024, participating in approximately 120 funding rounds, according to the Financial Times report. This underscores the intense competition in the AI sector, where major players are competing not only on innovation but also in expanding their ecosystems.
Strong financial results in a challenging environment
Nvidia’s growth in 2024 was not limited to its strategic investments. In June, the company reached a market value of $3 trillion, surpassing Apple as the world’s most valuable company on two occasions. In November, it reported annual revenues of $35.1 billion, a year-over-year increase of 94%.
However, this success has also attracted the attention of global regulators:
- United States: The Department of Justice (DOJ) initiated two antitrust investigations in August, assessing whether Nvidia has abused its dominant position by conditioning the sale of its GPUs on the purchase of additional products. Recent acquisitions, such as the purchase of Run:ai for $700 million and the acquisition of Bright Computing in 2022, are also under scrutiny.
- France: Nvidia’s offices were raided in 2023, and authorities are considering filing charges for anti-competitive practices.
- United Kingdom and EU: These regions have increased scrutiny on market concentration risks in the AI sector.
Nvidia’s response to scrutiny
Nvidia has denied the allegations of anti-competitive practices and conditioning its investments on infrastructure requirements. In a statement, the company said:
“Nvidia works to strengthen our ecosystem, support large companies, and enhance our platform for everyone. We compete on merit and offer each company the freedom to choose the technological solutions that best meet their needs.”
Future outlook
With its investment strategy, Nvidia not only strengthens its leadership in the AI market but also lays the groundwork for mass adoption of its technologies in key sectors. However, regulatory scrutiny could influence how the company approaches future deals and manages its dominance in the sector.
At a time when AI is transforming the global economy, Nvidia faces the challenge of balancing its exponential growth with the need to operate within competition laws. As the industry evolves, the company remains a central pillar in the technological revolution that is redefining the future.