New Delhi: Nvidia, the California-based chip manufacturer, has seen remarkable success recently, with its market capitalization exceeding $2 trillion by the end of February, placing it among the top three companies globally. This surge can be attributed to the increasing demand for artificial intelligence (AI) technology across various sectors, including healthcare and finance. Nvidia’s expertise lies in producing graphics processing units (GPUs), crucial for powering AI applications. However, the company’s focus extends beyond chips, as it explores opportunities in diverse fields benefitting from AI advancements.
In addition to manufacturing GPUs, Nvidia has been actively investing in startups leveraging AI across different industries. In the past year, it has significantly expanded its venture capital activities, backing nearly three dozen startups, which is more than triple the number of investments made in the previous year. These investments span various sectors, including software, pharmaceuticals, and healthcare. For instance, Moon Surgical, a recipient of Nvidia’s venture backing, secured $55.4 million in funding. Other notable investments include Recursion Pharmaceuticals and SoundHound AI, both applying AI technology in drug discovery and speech recognition, respectively.
These strategic investments have proven lucrative for Nvidia, with the value of its portfolio increasing substantially over the past year. Moreover, by supporting AI-focused ventures, Nvidia reinforces the demand for its GPU products, contributing to what it terms as the “ecosystem.” This ecosystem approach fosters collaborative innovation and expands Nvidia’s platform reach. CEO Jensen Huang has emphasized the growth potential of this ecosystem, highlighting collaborations with companies across various sectors, including healthcare, finance, autonomous vehicles, and robotics, all leveraging Nvidia’s technology platform.
