Nvidia's investment in A.I. startups has nearly tripled ??

Who is the Biggest BigTech funder of Generative AI? It's not just Microsoft, it's actually NVIDIA.

Nvidia's growth in A.I. chip demand as a monopoly is cascading into American Generative AI startups in a unique way, and it's outside the traditional experience and behavior of traditional Silicon Valley companies. The founder of Nvidia is a Taiwanese-American. Sign up for paid subscription of premium at my flagship Newsletter, A.I. Supremacy for more of my coverage.

Nvidia has made the smartest and most diversified bets in Generative AI start-ups on the planet in the last 18 months. Orlando, Florida-based Kore.ai?announced a funding round on Tuesday (Jan. 30), that was led by FTV Capital and included a contribution from, you guessed it, chip maker?Nvidia.

Amazing to think that in 2024, Nvidia could make half the profit that Google makes.

Nvidia's stunning market cap jump has corresponded with the smartest bets in the business. Specifically, Nvidia's annual year-on-year investing has ballooned 280%!Nvidia's own stock is already up nearly 28% in 2024, up 194% over the last year. Microsoft, Google and Amazon last year struck a series of blockbuster deals, amounting to two-thirds of the $27 billion raised by fledgling AI companies in 2023, according to new data from private market researchers PitchBook.

But according to Alex Irina Sandu's infographic attached, Nvidia is by far the most interesting one.How active, you ask?

• Nvidia's participation in 38 funding rounds also made the semiconductor juggernaut the fourth-biggest corporate venture investor of the year. Ahead of it stand Microsoft, Softbank, and Alphabet.Nvidia has invested in the likes of Cohere, AI21 Labs, Mistral AI, Inflection AI, Runway, Hugging Face, Databricks, CoreWeave, and the company has announced three startup investments to date in 2024.?
• Nvidia revenues nearly tripled in just two quarters, its stock gained more than 200%, and the company joined the rarefied club of companies worth over $1 trillion. Check that, now 1.5 Trillion.Nvidia is expected to finish fiscal 2024 with?revenue of $59 billion, translating into a five-year revenue compound annual growth rate (CAGR) of 38% using the company's fiscal 2019 revenue of $11 billion as a base.
• Nvidia has placed the best bets on the Generative AI industry of all of BigTech, and all the rest combined! Microsoft's self-serving bets pales in comparison.
• Nvidia is well-positioned to benefit from the growth in the AI chips market and the cloud gaming market. The company has an estimated 75% share of the fast-growing AI chips market, which could potentially drive its annual revenue to $300 billion in 2027.
• Nvidia invested $872 million in cash in "non-affiliates" in the first nine months of 2023, up from $83 million during the same period a year earlier. Nvidia’s investments span a wide range, from major AI platforms valued in the billions of dollars to smaller startups focusing on applying AI in sectors like healthcare and energy, but in the AI leaders right behind OpenAI.
• Nvidia built the "win-wins" of the market hype of 2023. All the companies in Nvidia’s portfolio are also customers of the chipmaker, utilizing either its GPU chips or software. Think about what that means.Within just two quarters, the company nearly tripled its revenues, hitting $18.1 billion for the year.

Read the Deep Dive.