"In a seismic move shaking up the tech world, Nvidia ( NASDAQ:NVDA ) has agreed to pour $100 billion into OpenAI, the artificial intelligence (AI) research powerhouse behind ChatGPT, signaling its ambition to dominate the AI ecosystem. This follows Nvidia's recent $5 billion stake in Intel ( NASDAQ:INTC ) - about 4% of the company - a strategic play to bolster its influence over chip manufacturing critical for AI workloads."
"Over the past two years, Nvidia has aggressively exceeding $100 million each. It also invested around $66 million in expanded through high-profile deals , including acquisitions like Run:ai (a $700 million deal) and Deci AI ($300 million), as well as investments in Applied Digital ( NASDAQ:APLD ) and CoreWeave ( NASDAQ:CRWV ), Nebius Group ( NASDAQ:NBIS) alongside smaller bets totaling over $1 billion in 2024 alone."
"As AI's potential for both transformative good and ethical risks - like autonomous weapons or mass surveillance - grows, concerns mount: Is Nvidia becoming too big and too powerful, to the point that it will invite regulatory scrutiny that could lead to an antitrust breakup, especially under a less business-friendly administration?"
Nvidia agreed to invest $100 billion in OpenAI and recently took a $5 billion, roughly 4% stake in Intel to strengthen control over AI chip manufacturing. The company has expanded through acquisitions like Run:ai and Deci AI, investments in Applied Digital, CoreWeave, and Nebius Group, and over $1 billion in smaller bets during 2024. Nvidia outpaces competitors in AI hardware and software. Growing AI capabilities raise ethical risks such as autonomous weapons and mass surveillance. Rapid consolidation and government interventions raise concerns about Nvidia becoming too dominant and potentially facing regulatory or antitrust action.
Read at 24/7 Wall St.
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