Back to all articles
•Economy

Nvidia's $40 Billion Bet on AI Companies: Strategic Investments or Circular Deals?

View original source

Nvidia has committed over $40 billion in equity investments in AI companies in the early months of 2026.

  • A significant portion of this investment, around $30 billion, is directed towards OpenAI.
  • Aside from OpenAI, Nvidia has announced seven additional multi-billion dollar investments, including up to $3.2 billion in glassmaker Corning and $2.1 billion in data center operator IREN.
  • Nvidia’s investment strategy also includes equity stakes in private AI startups, with the company participating in about two dozen investment rounds in 2026.
  • These investments have raised criticisms of circular deals, where funds are exchanged between Nvidia and its customers, potentially without real growth.
  • Matthew Bryson, a Wedbush Securities analyst, acknowledges the circular investment theme but notes that success could give Nvidia a competitive advantage.