Nvidia Corporation (NASDAQ:NVDA) is the largest company in the world, but Senator Elizabeth Warren (D-Mass.) says that “allowing a single company to effectively be the gatekeeper for the world’s AI future is dangerous and poses dire economic risks.”
A Wall Street Journal investigation published Monday details how Nvidia has become the AI industry’s most powerful financier, investing tens of billions in the same startups and cloud providers that buy its GPUs.
How The Flywheel Works
Nvidia invested roughly $800 million in open-source AI startup Reflection, anchoring a $2 billion funding round.
Most of that cash flows right back to Nvidia through GPU purchases.
One large Reflection investor called the company “a business arm” of Nvidia.
At a recruiting event in London, a Reflection executive told a potential hire: “When you are talking to us, you are talking to Nvidia.”
CoreWeave (NASDAQ:CRWV), one of Nvidia’s largest outside investments, has privately told rival chipmakers that it won’t use non-Nvidia chips for fear of upsetting …
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