<div id="readability-page-1"><div> Nvidia's (NVDA) AI chips laid the groundwork for a massive wave of venture capital investments in AI startups. From the first quarter of 2023 — following the launch of ChatGPT in November 2022 — through the first quarter of this year, venture capitalists have invested $306.5 billion in global AI and machine learning startups and private companies, with $230 billion of that value going to US firms, according to PitchBook data. And over that time frame, AI and machine learning companies accounted for roughly 48% of the total venture capital investments in the US. “ChatGPT’s breakout showed that large language models could scale into real products, which sparked a sharp rise in investor appetite,” PitchBook AI analyst Dimitri Zabelin told Yahoo Finance in an email. “Nvidia played a central role by supplying the compute backbone.” In the first quarter of 2025 alone, Zabelin explained, global VC investments in artificial intelligence and machine learning totaled $76.5 billion and accounted for over 70% of the value of all venture capital deals during the period. Some $66 billion of those investments were in US AI companies. Artificial intelligence has been around for decades, and AI researchers began experimenting with the use of Nvidia’s GPUs in the early 2000s to power the technology, finding that it was more effective than “traditional” computing chips called CPUs (central processing units). Then in 2011 and 2012, AI computing models powered by Nvidia’s AI-enabled GPUs began attracting widespread attention from both the academic community and Silicon Valley, including Sam Altman, whose startup OpenAI launched the chatbot ChatGPT in 2022 that brought AI mainstream. Nvidia shares have soared over 670% since the debut of ChatGPT, compared to the S&amp;P 500’s more modest 42% gain. “As GPU demand surged, it reinforced the view that AI represents a durable investment cycle,” Zabelin said. According to Bloomberg estimates, Microsoft and Meta spend roughly 47% and 25% of their capital expenditures on Nvidia’s chips, respectively, on an annualized basis. “That in turn set off a flywheel of product-market fit, infrastructure buildout, and accelerating capital flows,” Zabelin added. Since the first quarter of 2024, more than 20,000 artificial intelligence deals have closed in private markets, totaling $330 billion. Nvidia is set to report quarterly earnings on May 28. Wall Street analysts expect Nvidia to report soaring earnings and revenue for its fiscal 2026 first quarter (the April quarter), though they expect its growth to continue decelerating. </div></div>

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Nvidia's AI chips have been pivotal in driving a $306.5 billion investment surge in AI startups since the launch of ChatGPT in late 2022. AI and machine learning companies captured about 48% of US venture capital investments, with $76.5 billion in Q1 2025 alone. Nvidia's GPUs have been essential for AI development, leading to a 670% increase in its stock since ChatGPT's debut. Major companies like Microsoft and Meta heavily invest in Nvidia's technology, fueling further growth in the AI sector. Nvidia is expected to report strong earnings on May 28, despite anticipated growth deceleration.

- Nvidia's AI chips have significantly influenced venture capital investments in AI startups, with $306.5 billion invested globally from Q1 2023 to Q1 2025.  
- AI and machine learning companies represented about 48% of total US venture capital investments during this period, driven by the success of ChatGPT and Nvidia's technology.  
- In Q1 2025 alone, global VC investments in AI reached $76.5 billion, highlighting the growing demand for Nvidia's GPUs and the overall robust investment cycle in artificial intelligence.

Yahoo Finance

How Nvidia 'played a central role' in the $306 billion AI startup boom