Nvidia at the Heart of $306 Billion Global AI Startup Boom

Chipmaker’s GPUs power explosive growth in artificial intelligence investment and innovation

Nvidia's Chips Fuel AI Investment Surge

Nvidia (NASDAQ: NVDA) has played a pivotal role in the global explosion of artificial intelligence (AI) startups, underpinned by its advanced GPU technology. Since the launch of ChatGPT in late 2022, investor appetite for AI has skyrocketed — and Nvidia’s chips have become the backbone of this transformative shift.

Between Q1 2023 and Q1 2025, global venture capital (VC) investment in AI and machine learning startups reached $306.5 billion, with nearly $230 billion flowing into US-based companies, according to PitchBook.

ChatGPT Ignites AI Gold Rush

The debut of OpenAI’s ChatGPT demonstrated the real-world potential of large language models (LLMs), triggering a surge in VC funding. “ChatGPT’s breakout showed that LLMs could scale into real products, which sparked a sharp rise in investor appetite,” said Dimitri Zabelin, AI analyst at PitchBook.

Nvidia’s GPUs (graphics processing units), originally designed for gaming, quickly became the preferred compute engines for AI models due to their efficiency in handling complex data operations — outpacing traditional CPUs.

Q1 2025: AI Dominates VC Activity

In the first quarter of 2025 alone, global investment in AI and machine learning startups hit $76.5 billion, accounting for over 70% of all VC funding during that period. Of this, $66 billion went to US firms, highlighting America’s continued dominance in AI innovation.

This massive inflow of capital has fuelled a virtuous cycle of infrastructure build-out, rapid product development, and further investor confidence.

Nvidia: Powering the AI Revolution

Nvidia’s influence in the AI sector is unparalleled. Since ChatGPT’s release in 2022, Nvidia’s share price has surged over 670%, far outpacing the S&P 500’s 42% gain in the same period.

Big tech players are investing heavily in Nvidia-powered infrastructure:

• Microsoft allocates around 47% of its capital expenditure to Nvidia chips
• Meta spends approximately 25% of its annual capex on the same

“As GPU demand surged, it reinforced the view that AI represents a durable investment cycle,” Zabelin noted.

AI Funding and Deals Show No Signs of Slowing

Since Q1 2024, more than 20,000 private AI deals have closed globally, amounting to $330 billion. The rapid pace of funding reflects growing confidence in AI’s long-term potential and Nvidia’s role in driving it.

This unprecedented capital flow signals that investors view AI not just as a trend, but as a foundational shift in technology.

Earnings Outlook: Nvidia’s Growth Continues

Wall Street analysts expect Nvidia’s fiscal Q1 2026 (April quarter) results to reflect sustained strength, though growth is forecast to moderate:

• Revenue expected to rise 66% year-on-year to $43 billion
• Adjusted earnings per share (EPS) projected to increase 44% to $0.88

By comparison, the same quarter last year saw Nvidia post a 262% revenue jump and a 461% EPS gain. Despite slowing, these figures indicate Nvidia remains at the forefront of the AI boom.

Options markets suggest share price volatility of up to 7% following earnings.

Nvidia’s Critical Role in AI’s Future

• $306B invested in AI startups since early 2023
• Nvidia GPUs power majority of AI infrastructure
• VC funding hit $76.5B in Q1 2025 alone
• Nvidia shares up 670% since ChatGPT launch
• Major tech firms rely heavily on Nvidia hardware

Nvidia has emerged not just as a chipmaker but as the engine behind the AI revolution — powering the infrastructure that supports thousands of startups and billions in investment.

Sources: (Yahoo finance, ChatGPT)