Nvidia’s $24B AI deal blitz has Wall Street asking questions about ‘murky’ circular investments

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deals between the start of 2025 and Monday, according to Pitchbook data. For the entirety of 2024, Nvidia inked a total of 54 deals worth $22.8 billion.Nvidia’s investments in AI firms — totaling roughly $53 billion and amounting to 170 deals between 2020 and 2025 — span the entire AI ecosystem, ranging from large language model developers such as OpenAI (OPAI.PVT) and Cohere (COHR.PVT) to “neoclouds” like Lambda (LAMD.PVT) and CoreWeave (CRWV), which specialize in AI services and compete with the chipmaker’s Big Tech customers.Nvidia investments in AI between 2020 and 2025 (Pitchbook).In the deal announced Tuesday, Nvidia and Microsoft will invest up to $10 billion and as much as $5 billion, respectively, in AI developer Anthropic (ANTH.PVT). Anthropic will buy $30 billion of compute capacity from Microsoft Azure, and Anthropic and Nvidia will collaborate on design and engineering, the companies said.The partnership follows Nvidia's $6.6 billion investment in OpenAI (OPAI.PVT) in October and a $6 billion investment in Elon Musk’s xAI (XAAI.PVT) in November, per Pitchbook. Nvidia has committed to investing up to $100 billion in OpenAI in an eye-popping deal this September that sent its stock higher.The heaping pile of cash Nvidia has poured into AI startups is a sign of how the chipmaker has looked to strengthen its grip on the market following the launch of ChatGPT in 2022, which brought generative artificial intelligence mainstream. Nvidia is the dominant AI chipmaker whose GPUs (graphics processing units) are crucial to training and running AI models.But analysts and investors are beginning to question the nature of some of Nvidia’s AI investments in its own customers. Tech stocks have sold off in recent days amid concerns of a market bubble driven by artificial intelligence hype.“It's very murky,” Seaport analyst Jay Goldberg, who holds a rare Sell rating on Nvidia stock, said of the chipmaker's investment in OpenAI. The investment, announced in September, is part of a partnership in which OpenAI would purchase a ton of Nvidia chips — the AI developer has committed to deploying "at least 10 gigawatts" of compute capacity from Nvidia's AI systems to train and run its next generation of artificial intelligence models.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,663.50 +23.75 (+0.36%)Dow Futures46,247.00 +63.00 (+0.14%)Nasdaq Futures24,702.00 +106.25 (+0.43%)Russell 2000 Futures2,368.10 +12.40 (+0.53%)VIX23.93 -0.76 (-3.08%)Gold4,113.00 +46.50 (+1.14%)PortfolioSign in to access your portfolioSign inTop gainersONDS Ondas Holdings Inc. 7.84 +1.59 (+25.34%)DGNX Diginex Limited 16.20 +2.61 (+19.21%)LGN Legence Corp. 44.93 +4.81 (+11.99%)TMC TMC the metals company Inc. 5.42 +0.54 (+10.95%)SRRK Scholar Rock Holding Corporation 39.81 +3.34 (+9.14%)Top losersNICE NICE Ltd. 105.65 -15.21 (-12.58%)KLAR Klarna Group plc 31.63 -3.25 (-9.32%)PACS PACS Group, Inc. 14.43 -1.27 (-8.09%)SNDK Sandisk Corporation 244.93 -20.95 (-7.88%)GPCR Structure Therapeutics Inc. 34.50 -2.94 (-7.85%)Most activeNVDA NVIDIA Corporation 181.36 -5.24 (-2.81%)ONDS Ondas Holdings Inc. 7.84 +1.59 (+25.34%)PLUG Plug Power Inc. 2.1400 +0.0550 (+2.64%)OPEN Opendoor Technologies Inc. 7.52 -0.32 (-4.08%)BBAI BigBear.ai Holdings, Inc. 5.98 +0.41 (+7.36%)Earnings eventsMy earnings eventsEarnings eventsTrending tickersPLUG Plug Power Inc. 2.1400 +0.0550 (+2.64%)TMC TMC the metals company Inc. 5.42 +0.54 (+10.95%)OLMA Olema Pharmaceuticals, Inc. 20.14 +11.62 (+136.39%)NET Cloudflare, Inc. 196.53 -5.72 (-2.83%)XRP-USD XRP USD 2.25 -0.00 (-0.03%)Top economic events