Nvidia’s (NVDA) newest AI partnership with Microsoft (MSFT) and Anthropic underscores the chipmaker’s torrid tempo of dealmaking this yr, whilst round synthetic intelligence agreements have set off alarm bells amongst buyers.
Nvidia invested $23.7 billion in companies within the house via 59 offers between the beginning of 2025 and Monday, in line with Pitchbook knowledge. For the whole thing of 2024, Nvidia inked a complete of 54 offers price $22.8 billion.
Nvidia’s investments in AI companies — totaling roughly $53 billion and amounting to 170 offers between 2020 and 2025 — span your complete AI ecosystem, starting from massive language mannequin builders reminiscent of OpenAI (OPAI.PVT) and Cohere (COHR.PVT) to “neoclouds” like Lambda (LAMD.PVT) and CoreWeave (CRWV), which concentrate on AI providers and compete with the chipmaker’s Massive Tech clients.
Nvidia investments in AI between 2020 and 2025 (Pitchbook).
Within the deal introduced Tuesday, Nvidia and Microsoft will make investments as much as $10 billion and as a lot as $5 billion, respectively, in AI developer Anthropic (ANTH.PVT). Anthropic will purchase $30 billion of compute capability from Microsoft Azure, and Anthropic and Nvidia will collaborate on design and engineering, the businesses mentioned.
The partnership follows Nvidia’s $6.6 billion funding in OpenAI (OPAI.PVT) in October and a $6 billion funding in Elon Musk’s xAI (XAAI.PVT) in November, per Pitchbook. Nvidia has dedicated to investing as much as $100 billion in OpenAI in an eye-popping deal this September that despatched its inventory greater.
The heaping pile of money Nvidia has poured into AI startups is an indication of how the chipmaker has appeared to strengthen its grip in the marketplace following the launch of ChatGPT in 2022, which introduced generative synthetic intelligence mainstream. Nvidia is the dominant AI chipmaker whose GPUs (graphics processing items) are essential to coaching and working AI fashions.
However analysts and buyers are starting to query the character of a few of Nvidia’s AI investments in its personal clients. Tech shares have offered off in current days amid issues of a market bubble pushed by synthetic intelligence hype.
“It’s totally murky,” Seaport analyst Jay Goldberg, who holds a uncommon Promote score on Nvidia inventory, mentioned of the chipmaker’s funding in OpenAI. The funding, introduced in September, is a part of a partnership through which OpenAI would buy a ton of Nvidia chips — the AI developer has dedicated to deploying “not less than 10 gigawatts” of compute capability from Nvidia’s AI methods to coach and run its subsequent era of synthetic intelligence fashions.
“It’s totally unclear what the motivation right here is … To what diploma is Nvidia investing versus shopping for demand or subsidizing demand [for its chips]?”
Nvidia declined to touch upon its investments in its personal clients.
When Nvidia CEO Jensen Huang was requested on the Bg2 podcast to reply to analyst critiques that its funding in OpenAI may artificially inflate AI demand, he mentioned that Nvidia’s funding is separate from income it may see from the AI developer.
“[OpenAI] is probably going going to be the following multitrillion-dollar hyperscale firm, and who doesn’t need to be an investor in that?” Huang mentioned. “My solely remorse is that they invited us to take a position early on, and we had been so poor that we didn’t make investments once I ought to have given all of them my cash.”
“We have made some nice investments,” he mentioned, utilizing Nvidia’s investments in xAI and CoreWeave as examples.
Many analysts agree with Huang that Nvidia’s large investments in AI, reminiscent of its cope with OpenAI, are sensible performs in boosting the AI ecosystem.
“I may argue that there is not any higher use of Nvidia’s money proper now,” Bernstein analyst Stacy Rasgon advised Yahoo Finance in October, talking of its investments in its personal clients.
Nvidia is about to report earnings after the bell Wednesday.
NVIDIA CEO Jensen Huang speaks on the Washington Conference Middle on Oct. 28, 2025. (AP Picture/Manuel Balce Ceneta) · ASSOCIATED PRESS
Laura Bratton is a reporter for Yahoo Finance. Observe her on Bluesky @laurabratton.bsky.social. E mail her at [email protected].
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