Nvidia’s Strategic Surge into AI Startups: Investment Insights
Nvidia, the dominant player in high-performance GPUs, has significantly expanded its investment footprint in the AI startup ecosystem, capitalizing on the AI boom triggered by innovations like ChatGPT. The company’s market capitalization has surged to $4.6 trillion as it continues to enhance its profitability and cash reserves. In 2025 alone, Nvidia has engaged in 67 venture capital deals, outpacing the 54 deals completed in 2024 and indicating a rapid acceleration in its investment strategy, as per PitchBook data. This surge does not include transactions from its dedicated corporate venture fund, NVentures, which has also ramped up its activity.
Nvidia aims to foster the AI landscape by investing in promising startups classified as "game changers and market makers." Notable investments exceeding $100 million since 2023 reveal Nvidia’s extensive involvement in shaping the tech industry beyond its GPU manufacturing roots.
Key Investments in AI Startups:
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OpenAI: Nvidia entered as an investor in October 2024, contributing $100 million to a $6.6 billion funding round, which valued OpenAI at $157 billion. However, Nvidia did not partake in a subsequent $40 billion round but hinted at a potential long-term partnership involving up to $100 billion.
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Anthropic: Committing up to $10 billion in November 2025, Nvidia’s strategic investment coincided with a $5 billion contribution from Microsoft, highlighting its role in advancing AI capabilities.
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Cursor: In November, Nvidia made a strategic investment in Cursor, participating in a $2.3 billion Series D round, valuing the AI-powered code assistant at approximately $29.3 billion.
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Mistral AI: Nvidia’s third investment in the French LLM developer occurred with a €1.7 billion funding round in September, reflecting its commitment to advancing AI technologies.
Emerging Players Benefitting from Nvidia’s Backing:
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Reflection AI: In October, Nvidia was a key investor in Reflection AI, which raised $2 billion and aims to provide U.S.-based competition to international models.
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Thinking Machines Lab: Backed by Nvidia, this startup’s $2 billion seed round in July has positioned it with a post-money valuation of $12 billion.
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Nscale: Raising $1.1 billion in September, followed by a $433 million SAFE funding, Nscale is developing crucial data centers for AI infrastructure.
Nvidia’s investments are strategically realized across various sectors within the AI landscape, showcasing its commitment to becoming a cornerstone in the fabric of future technology solutions. As Nvidia continues this momentum, it reaffirms its role not just as a hardware supplier but as a driving force in the evolution of artificial intelligence.
