--- title: "NVIDIA invested over $70 billion in partners last fiscal year to vigorously consolidate AI chip demand" type: "News" locale: "en" url: "https://longbridge.com/en/news/277125201.md" description: "NVIDIA invested over $70 billion in partners and customers in the last fiscal year to solidify its demand base and dominance in the competitive AI chip market. According to the latest cash flow statement, NVIDIA purchased $40.6 billion in tradable securities and $17.5 billion in non-tradable securities, with the investment scale significantly higher than the previous year. These investments have sparked market discussions about NVIDIA's cyclical trading, involving funding to customers such as OpenAI and CoreWeave" datetime: "2026-02-27T01:21:34.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/277125201.md) - [en](https://longbridge.com/en/news/277125201.md) - [zh-HK](https://longbridge.com/zh-HK/news/277125201.md) --- > Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/277125201.md) | [繁體中文](https://longbridge.com/zh-HK/news/277125201.md) # NVIDIA invested over $70 billion in partners last fiscal year to vigorously consolidate AI chip demand NVIDIA significantly increased its equity investments in partners and customers in the last fiscal year, utilizing over $70 billion in cash in an attempt to solidify its demand base and maintain its dominance in the increasingly competitive artificial intelligence (AI) chip market. According to the company's latest cash flow statement, NVIDIA purchased $40.6 billion in tradable securities and $17.5 billion in non-public or private securities during the fiscal year, significantly higher than the previous fiscal year's levels of $26.6 billion and $1.5 billion, respectively, with the overall scale more than doubling. These investments have reignited market discussions about NVIDIA's so-called circular transactions. In such transactions, NVIDIA invests in customers or partners—such as OpenAI and CoreWeave—who then procure NVIDIA's AI accelerators for building data centers and AI service platforms. After the company released better-than-expected financial results on Wednesday, Chief Financial Officer Colette Kress stated that continued investment in what she calls the "extreme ecosystem"—covering everything from upstream suppliers to early developers of AI products using NVIDIA hardware—remains one of the company's most important strategies. "We will continue to make these types of investments a key component of our operational processes and strategic deployments," Kress said in response to analysts asking why more cash was not used for repurchasing recently underperforming stocks. NVIDIA quantified the overall scale of its investments in other companies in its financial report, but the cash flow documents did not disclose the specific amounts directed to each company. NVIDIA also disclosed for the first time some financial details of an unusual deal it made last year with AI startup Groq Inc. In December of last year, NVIDIA announced that it would pay for the rights to use Groq's technology and planned to integrate its chip designs into future products. As part of the agreement, Groq's CEO and several executives also joined NVIDIA. The financial report showed that NVIDIA paid $13 billion for this transaction in the fiscal year and will pay an additional $4 billion (including interest) within a year. The company described the agreement as a non-exclusive license and recognized $14.4 billion in goodwill and $2.5 billion in "developed technology" intangible assets on its balance sheet. These transactions directly boosted NVIDIA's capital expenditure scale. Data shows that the cash outflow for investment activities rose to $52.2 billion, a significant increase from the previous fiscal year's $20.4 billion. Meanwhile, NVIDIA's core business remains highly profitable: operating cash flow for the fiscal year reached $102.7 billion, up from $64.1 billion the previous year. However, due to aggressive investments and approximately $40 billion in stock repurchases, the company's cash and cash equivalents only increased by about $2 billion at the end of the period, despite its net profit reaching $120 billion. Investor Michael Burry, known for "The Big Short," pointed out on Thursday regarding NVIDIA's financial report that the company's procurement commitments have reached $95.2 billion, compared to only $16.1 billion a year ago NVIDIA is highly dependent on TSMC for AI accelerator manufacturing. These long-term commitments may amplify risks when demand fluctuates. However, if NVIDIA successfully secures enough capacity, it will also help address another long-standing concern on Wall Street—whether the company can obtain sufficient supply to fulfill its high growth guidance. In this regard, NVIDIA clearly stated in its latest earnings call that the company is preparing to meet the growing demand from customers. Chief Financial Officer Kress stated, "We believe we have secured the necessary inventory and supply commitments to meet future demand, including shipping arrangements extending into the 2027 calendar year." ### Related Stocks - [NVIDIA Corporation (NVDA.US)](https://longbridge.com/en/quote/NVDA.US.md) - [OpenAI (OpenAI.NA)](https://longbridge.com/en/quote/OpenAI.NA.md) - [CoreWeave, Inc. 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