Nvidia is maintaining a strong momentum in AI startup investments, far outpacing competitors like Microsoft and Google. The chipmaker’s aggressive funding pace continues to shape the AI landscape, with significant contributions to startup growth.

Nvidia’s Growing Investment in AI Startups

Just last month, Lambda, a company providing computing services and hardware for AI training, raised $480 million in Series D funding, bringing its valuation to $2.5 billion. On the same day, Together AI, which develops a cloud platform for building AI models, secured $305 million at a $3.3 billion valuation. Nvidia was a key investor in both rounds.

This aggressive investment strategy from Nvidia comes as no surprise. Over the last two years, Nvidia has emerged as a leading force in AI startup funding, surpassing both Microsoft and Google. While the exact amount Nvidia invested in these rounds is often not disclosed, its involvement is clear.

Nvidia’s Investment Activity in 2024

In 2024, Nvidia participated in 26 funding rounds, totaling $18.8 billion. This marks a significant increase from its 2023 investments, where it took part in 24 rounds worth $4.5 billion. Notable deals include Nvidia’s participation in OpenAI’s $6.6 billion funding and xAI’s $6 billion round. Additionally, Nvidia invested in self-driving car startup Wayve, which raised $1.1 billion, and data labeling company Scale AI, which secured $1 billion in funding at a $13.8 billion valuation.

Nvidia’s venture arm, NVentures, has also been active, albeit on a smaller scale. Last year, NVentures participated in 14 rounds, totaling $89 million, slightly ahead of its 2023 activity, where it invested $824 million across 11 rounds.

Microsoft’s AI Investment Strategy

Microsoft has been less active in recent AI investments compared to Nvidia. In 2024, the tech giant participated in nine AI funding rounds, totaling nearly $10 billion, slightly less than its 2023 participation, which totaled $12.2 billion across 12 rounds.

Some of Microsoft’s investments overlap with Nvidia, such as in OpenAI and Wayve. However, Microsoft also made headlines with a $1.5 billion investment in the UAE-based AI company G42. Its venture arm, M12, took part in 10 funding rounds, totaling $268 million last year.

While Microsoft hasn’t shifted its strategy dramatically, it seems to be focusing more on internal AI development this year, with fewer external investments, including a small pre-seed round for GuidenAI.

Google’s Shift in AI Funding

Google’s investment in AI startups has seen a sharp decline. In 2024, Google only participated in four deals, totaling $3.2 million. In comparison, Google’s investments in 2023 included 12 rounds worth nearly $3.6 billion. Its biggest round in 2024 was a $2.8 million seed round for CharacterX.

However, Google’s venture arm, GV, remained active last year, participating in 22 deals totaling $1.5 billion. Notable investments included a $250 million Series E for Vercel, which helps companies build web applications in the cloud, and a $400 million Series D for Lightmatter, a startup innovating in AI deep learning through light-based chip technology.

Shifting Focus for Google and Microsoft

While Nvidia continues its heavy investment in AI startups, Google appears to be ramping up its efforts. In January 2024, Google invested $1 billion into Anthropic, an AI rival to OpenAI, and recently participated in a $350 million Series A round for Apptronik, a humanoid robotics company.

In contrast, Microsoft seems to be focusing more on its partnership with OpenAI and exploring relationships with companies like SoftBank and Oracle. This shift suggests that Microsoft may prioritize internal AI development rather than expanding its venture investments.

Nvidia’s Dominance in AI Startup Investment

Despite changes in strategy from Microsoft and Google, Nvidia’s investment pace remains unmatched. The company continues to dominate the AI startup space, feeding the ecosystem with funds while leveraging its high-performing chips to drive the next wave of AI innovation.