Nvidia vs. Rivals: Who’s Investing More in AI Startups?
As AI continues to dominate the tech landscape, chipmakers are racing to secure their positions by investing heavily in innovative startups. Nvidia, the undisputed leader in AI chips, has significantly ramped up its startup investments—but how do its compe*****s stack up? Let’s dive into the numbers.
The AI Chip Investment Boom
Nvidia’s startup investments surged 280% year-over-year from 2022 to 2023, with its venture arm, Nvidia Ventures, participating in 46 deals last year alone. However, rivals like Intel, AMD, and Arm are also aggressively backing startups to gain ground in the AI space, particularly in generative AI.
We analyzed Crunchbase data to compare investment activity among these tech giants. Here’s what we found.
Intel: The Heavyweight Investor
Intel leads Nvidia’s compe*****s in startup funding, thanks to its long-standing venture arm, Intel Capital. In 2023:
- $350M+ deployed across investments
- 32 startup deals (down from 47 in 2022)
- Key investments include AI21 Labs (OpenAI rival), Grip Security, and Fly.io
Intel also made direct investments in Hugging Face and Twelve Labs, along with a non-equity stake in Tweed via its Ignite accelerator.
Intel’s AI Focus: A Strategic Shift?
Despite AI’s growing importance, Intel’s portfolio leans more toward enterprise SaaS and IT than AI startups. However, this may change as Intel expands its AI offerings, including spinning out Articul8 AI, a GenAI solutions provider for industries like finance and telecom.
Arm: Betting on Deep Tech
Arm, primarily a chip design licensor, has a smaller but growing investment footprint:
- 4 direct investments in 2023 (e.g., SiPearl, Raspberry Pi)
- 6 deals via Deeptech Labs, its accelerator (e.g., Nu Quantum, RoboK)
- Total: 10 deals (up from just 4 in 2022)
With AI chip sales expected to surge, Arm’s future investments may increasingly target AI-driven startups.
AMD: Cautious but Scaling Up
AMD’s venture arm, AMD Ventures, has been relatively conservative:
- 4 deals in 2023 (e.g., Ethernovia, Essential AI, Hugging Face)
- Only 1 deal in 2022 (Radian Arc)
However, AMD’s Chief Strategy Officer, Matthew Hein, confirms plans to double down in 2024, aiming for double-digit investments—particularly in AI infrastructure and generative models.
AMD’s AI Hardware Push
The company is also accelerating production of its MI300 AI chip and launching Ryzen 8040 mobile processors, signaling a stronger focus on AI-driven hardware.
By the Numbers: Nvidia Still Dominates
While rivals are stepping up, Nvidia remains far ahead:
- Nearly $1B invested in startups in just the first three quarters of 2023
- Controls ~95% of the AI chip market
Why Startup Investments Matter
Investing in startups isn’t just about financial returns—it’s a strategic play to:
- Strengthen ecosystem partnerships
- Drive innovation in AI applications
- Secure long-term market dominance
The Bottom Line
Nvidia’s rivals are playing catch-up, but the gap remains wide. As AI continues to evolve, these investments will be crucial in shaping the future of chip technology. For now, Nvidia’s aggressive funding strategy keeps it firmly in the lead.
Will 2024 bring a shift in the balance? Only time—and more deals—will tell.
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