Jensen Huang explains why Nvidia invests in tons of companies, instead of trying to pick winners

Jensen Huang, co-founder of Nvidia, recently shared insights on the company's broad investment strategy during an episode of the 'Dwarkesh' podcast. Rather than narrowing their focus to a select few companies, Nvidia aims to support a multitude of tech ventures, especially those developing foundational models. Huang emphasized the importance of inclusivity in their investment approach, stating, "We don’t pick winners. We need to support everyone." He reflected on Nvidia's own journey, recalling the early days when the market was saturated with 60 3D graphics firms. Surprisingly, Nvidia was not among the frontrunners expected to succeed. "If you would have taken those 60 graphics companies and asked yourself which one was going to make it, Nvidia would be at the top of that list not to make it," he noted. Huang's perspective is rooted in humility and a recognition of the unpredictable nature of innovation. He stated, "Everybody would have counted us out. And here we are." This philosophy underpins Nvidia's substantial investments across various sectors, including artificial intelligence, biotechnology, robotics, and autonomous driving technologies. The company has made significant financial commitments, such as a $10 billion investment in Anthropic for the development of the Claude AI system and a staggering $30 billion in OpenAI. Huang hinted that these might be among Nvidia's last investments in these private entities as they prepare for public offerings. Additionally, Nvidia's portfolio includes stakes in prominent public companies like CoreWeave, Intel, Synopsys, and Nokia, alongside various startups like Wayve, Scale AI, and Figure AI, which are pushing the boundaries of technology. Through this diverse investment strategy, Nvidia aims to foster innovation and growth in the tech landscape, demonstrating a commitment to supporting the broader ecosystem rather than merely selecting potential winners.