Over the past few years, Nvidia has significantly increased its investments in startups, particularly those involved in the AI space. According to S&P Global and Crunchbase, Nvidia’s startup investments surged by 280% from 2022 to 2023, with the company and its VC arm, Nvidia Ventures, participating in approximately 46 deals last year.
Key Takeaway
Nvidia’s rivals, including Intel, Arm, and AMD, are actively investing in startups to bolster their positions in the AI chip space. While Intel leads in terms of investment volume, all companies are gearing up to increase their focus on the AI ecosystem in the coming years.
Intel’s Investment Operation
Intel, one of Nvidia’s chief rivals, boasts the largest startup investment operation, primarily through Intel Capital, its longstanding VC. In 2023, Intel Capital allocated over $350 million across its investments, including notable ventures such as AI21 Labs, Twelve Labs, Fly.io, and TuMeke. Despite a slight decrease in the number of startup deals compared to 2022, Intel’s venture portfolio spans various sectors, with a particular focus on software, IT, and enterprise SaaS companies.
Arm’s Direct Investments
Arm, while not as active as Intel in startup investments, made significant strides in 2023. The company directly invested in four startups and made six investments through Deeptech Labs, a VC fund and accelerator co-launched with other entities. With a focus on sales of its data center and consumer AI chips, Arm’s future investments are expected to align more closely with the AI sector.
AMD’s Ventures and Future Plans
AMD, like Intel and Arm, invests in startups directly and through its VC arm, AMD Ventures. However, its investment activity is relatively conservative, with only a single investment made in 2023. Nevertheless, the company’s chief strategy officer of corporate development has indicated a ramp-up in investment activity for 2024, particularly targeting the AI ecosystem.
