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Nvidia's web of AI bets: smart strategy or bubble risk?

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Nvidia's web of AI bets: smart strategy or bubble risk?

Business News Tech AI Nvidia's web of AI bets: smart strategy or bubble risk?

Nvidia's $3 billion investment in Meta's share sale, announced Tuesday, is the latest addition to a portfolio of stakes, loans and guarantees that has made the chip giant what some analysts describe as the central bank of the artificial intelligence boom. Nvidia also has around $36 billion in cloud backstops and a guarantee of up to $105 billion linked to an OpenAI data center, according to US media.

Nvidia's $3 billion investment in Meta's share sale, announced Tuesday, is the latest addition to a portfolio of stakes, loans and guarantees that has made the chip giant what some analysts describe as the central bank of the artificial intelligence boom. The galaxy of deals has helped keep demand running high for Nvidia's processors, which power vast data centers around the world and are the central ingredient of the AI revolution. That demand has made Nvidia the world's most valuable company by market capitalization and turned chief executive Jensen Huang into AI's kingmaker.

But the investments have raised a nagging question among some doubters on Wall Street: is Nvidia helping to inflate an AI bubble? - What is Nvidia investing in? - Nvidia has taken stakes in leading AI developers including OpenAI , Anthropic and Elon Musk's xAI, now part of SpaceX. It has also invested in "neocloud" companies such as CoreWeave and Nebius, which rent out computing power built on Nvidia chips. Its bets extend well beyond the United States.


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