NVIDIA’s investment strategy creates a circular demand engine: every company they invest in needs massive compute for training and inference. That compute comes from NVIDIA.
Every investment NVIDIA makes pays dividends twice:
Equity appreciation — If the company succeeds, NVIDIA’s stake appreciates
Hardware sales — The company must buy NVIDIA GPUs to operate
This is the “circular economics” pattern that makes NVIDIA’s position so powerful. They’re not just betting on AI — they’re the house that supplies the chips to every player at the table.
Why Competitors Can’t Replicate
Capital requirements — Building this portfolio took $10B+ in investments
Hardware lock-in — CUDA ecosystem creates switching costs
Network effects — More customers = more software optimization = better performance
Time advantage — Started building relationships years before competitors
Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy.
