NVIDIA Corp. (NASDAQ:NVDA) invested $1 billion across 50 startup funding rounds. The Jensen Huang-led company also acquired a number of AI players, consolidating its position in the segment.

What Happened: The semiconductor giant's investment surge represents a 15% increase from its $872 million spending in 2023, according to corporate filings and Dealroom research. The investments primarily targeted companies developing core AI technologies that often require substantial computing infrastructure, reported the Financial Times on Wednesday.

The investment spree follows Nvidia's accumulation of a $9 billion cash reserve, driven by unprecedented demand for its graphics processing units since ChatGPT's debut two years ago. The company's market capitalization surpassed $3 trillion in June, while its shares climbed more than 170% in 2024.

Notable investments included stakes in Elon Musk's xAI, alongside rival Advanced Micro Devices Inc. (NASDAQ:AMD), and participation in funding rounds for prominent AI model providers OpenAI, Cohere, Mistral, and Perplexity. The company also acquired several AI software firms, including Run:ai, Nebulon, and OctoAI.

Why It Matters: This aggressive investment strategy comes as major customers like Microsoft Corp. (NASDAQ:MSFT), Amazon.com Inc. (NASDAQ:AMZN), and Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) work to develop their own custom chips, potentially making smaller AI companies more crucial for Nvidia's future revenue.

The expansion has attracted attention from antitrust regulators. Bill Kovacic, former Federal Trade Commission chair, noted that competition watchdogs are particularly interested in examining whether such investments aim to achieve market exclusivity.

Nvidia rejected suggestions that its investments are tied to technology requirements, according to the report, stating it "competes and wins on merit, independent of any investments." The company emphasized that its portfolio companies maintain freedom in their technological choices.