Step 1: Invest — Deploy capital to validate technology and team. Gain inside access to roadmap and capabilities before competitors even know about the opportunity.
Step 2: Observe — Monitor performance, strategic fit, and competitive positioning. Test integration with the NVIDIA stack. Determine if the technology complements or conflicts with existing products.
Step 3: Acquihire — Acquire the entire operation. Bring capability in-house. Deny technology to competitors.
Case Study: Enfabrica
NVIDIA invested in Enfabrica’s networking chips. They observed strategic fit with GPU clusters. Then they acquired the entire company for $900M+.
The networking chip capability now lives inside NVIDIA rather than serving competitors. The investment served as both due diligence and strategic option.
Why This Pattern Works
Reduced Risk — Investment validates technology before committing to acquisition
Information Advantage — Board seats and data rights provide inside view
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.
