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Posted August 25, 2026 at 11:30 am
The chip giant is investing big in other AI companies, all while rivals – and even some customers – might be nipping at its heels.
Nvidia, the biggest company in the world, is kicking spending into high gear ahead of its earnings report on Wednesday.
What does this mean?
The chipmaker is reportedly weighing an investment in AI-powered search engine Perplexity, which is also a customer. The deal would value Perplexity at more than $30 billion and be Nvidia’s latest iteration of bankrolling the very AI ecosystem that pays it.
▶ At the same time, the chipmaker’s investing $1 billion into AI startup Poolside, and paying it $6 billion to license its tech and hire its engineers – specifically, to work on the Nvidia Nemotron family of open-weight AI models. With cheaper Chinese open-weight options earning rave reviews and market share, the American company is sharpening its claws.
For markets: Coming for the crown.
Chipmakers are taking a big slice of the AI infrastructure budget: semiconductor spending is expected to top $1 trillion next year. So there’s a lot to play for – and these days, Nvidia isn’t the only game in town.
▶ Some of Nvidia’s clients, including Amazon and Alphabet, are developing their own chips for both internal use and to sell to external customers.
Zooming in: Real demand – or bought?
Nvidia’s using its colossal balance sheet to help customers buy its chips, through direct investments and partnerships. And that’s got some folks worried that the firm is artificially boosting demand.
▶ For now, it seems real: Nvidia’s expected to announce $92 billion in quarterly sales on Wednesday, almost double the same period last year. Not bad for a $5 trillion company, seeing as that kind of growth rate is usually the preserve of smaller firms with more room to expand.
▶ Still, investors will be scrutinizing Nvidia’s rest-of-the-year forecast for signs that it can sustain both its breakneck growth and its big profit margins.
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Originally Posted 8/25/26 – Nvidia’s Investing In Its Own Customers – Again
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