Quick Facts
- Nvidia invested over $40 billion in AI companies in the first months of 2026, with $30 billion going to OpenAI
- The company made seven multi-billion-dollar public company investments and participated in 24 private startup funding rounds
- Critics argue these investments create circular financing where companies use Nvidia’s capital to buy Nvidia’s own chips
Nvidia has committed more than $40 billion to equity investments in AI companies during the first few months of 2026, setting a record pace for corporate investment in the sector.
The chip giant’s largest single investment was $30 billion in OpenAI in late February 2026. The remaining $10 billion spread across seven multi-billion-dollar deals in publicly traded companies and roughly 24 private startup funding rounds.
Major public investments include up to $3.2 billion in Corning and $2.1 billion in data center operator IREN. Nvidia also invested $2 billion each in AI cloud companies CoreWeave and Nebius Group, plus $2 billion investments in Marvell Technology, Lumentum, and Coherent for silicon photonics technology.
“There are so many great, amazing foundation model companies, and we try to invest in all of them. We don’t pick winners. We need to support everyone,” CEO Jensen Huang said during an April podcast appearance.
Huang explained the strategy during Nvidia’s February earnings call: “Our investments are focused very squarely, strategically on expanding and deepening our ecosystem reach.”
The investment spree comes as Nvidia posted record financial results. Fiscal 2026 revenue reached $215.9 billion, up 65% from the previous year. Data Center revenue hit a record $62.3 billion quarterly, up 75% year-over-year.
Nvidia’s non-marketable equity securities on its balance sheet grew to $22.25 billion at the end of January from $3.39 billion a year earlier, with gains of $8.92 billion on equity investments.
Wall Street analysts have raised concerns about circular financing. Matthew Bryson from Wedbush Securities said Nvidia’s investments fit “squarely into the circular investment theme” driving market durability fears. Mizuho analyst Jordan Klein noted: “It smells like you are pre-funding the purchase of your own GPUs and products.”
The circular deal critique centers on Nvidia investing in companies that then use that capital to purchase Nvidia’s chips and services. Critics argue this creates a closed loop that may inflate valuations without reflecting independent market demand.
Both Wall Street and the SEC are questioning whether disclosure regimes keep pace with these arrangements’ scale. Creative Strategies analyst Ben Bajarin warned: “The risk is that if the cycle turns, the market starts questioning how much of the demand was organic versus supported by Nvidia’s own balance sheet.”
The 2026 investment pace already exceeds Nvidia’s full fiscal 2025 commitment of $17.5 billion in private companies and infrastructure funds. Nvidia’s outlook for Q1 fiscal 2027 expects revenue of $78.0 billion, indicating continued growth that could fuel more investment activity.
Read more: Nvidia has already committed $40B to equity AI deals this year