Nvidia Defends AI Backing Strategy as Supported Labs Drive 25% of 2027 Revenue
Updated
Updated · Yahoo Finance · Aug 27
Nvidia Defends AI Backing Strategy as Supported Labs Drive 25% of 2027 Revenue
1 articles · Updated · Yahoo Finance · Aug 27
Summary
A quarter of Nvidia’s business next year is expected to come from AI labs that also receive its financial support, CFO Colette Kress said on the company’s Q2 earnings call.
Kress rejected criticism that the model amounts to circular financing, arguing Nvidia is backing “once-in-a-generation” companies whose demand, customer traction and usage are already surging.
Nvidia said the investments should pay off through customer demand, broader revenue diversity, ecosystem growth on its platform and equity returns, while keeping its risk limited.
The strategy underscores Nvidia’s push to sit at the financial and technological center of the AI buildout by helping fund emerging customers beyond the biggest tech groups.