Shares of smaller AI firms rallied after Nvidia disclosed a stake in them, indicating its growing influence in the AI world. The largest investment of $147.3 million was in Arm Holdings, the chip designer Nvidia failed to buy after the $80 billion deal hit the antitrust hurdle two years ago. Shares of Arm surged more than 60% over the last week after a strong forecast. Nvidia’s involvement in a broad range of companies could help it make more affordable but hyper-focused chipsets rather than expensive general-purpose AI chips. Shares of biotech firm Recursion Pharmaceuticals, conversational voice assistant developer SoundHound AI, Israel-based medical device company Nano-X Imaging, and autonomous driving technology TuSimple Holdings also rose. Nvidia’s investments indicate a portfolio approach where one could expect winners and losers.

Credit: Reuters