Nvidia: An Overview

Nvidia is a publicly-traded semiconductor company headquartered in Santa ✅Clara, California. It was founded in 1993 by Jensen H💜uang, Chris Malachowsky, and Curtis Priem. It designs, manufactures, and sells graphics processors and related software.

In the late 20th century, dozens of companies were competing to develop PC graphics chips for video games and multimedia. Nvidia is one of the few graphic chip companies from that period still in business.

The American company is credited with inventing the 澳洲幸运5官方开奖结果体彩网:graphics processing unit (GPU) in 1999, which is used in computers and other electronics. Nvidia products are fundamental to powering 澳洲幸运5官方开奖结果体彩网:artificial intelligence models.

Nvidia has grown by 澳洲幸运5官方开奖结果体彩网:acquiring other companies. Through these deals, the GPU maker has been able to diversify its product and service offerings and, inꦓ turn, increase its sales and market share.

A Force in Artificial Intelligence (AI)

Nvidia has emerged as a critical player in AI and virtual reality. These newer forms of technology ꧑can be used in a number of applications, inclu🎃ding:

• Chatbots
• Coding software
• Robotics
• Medical imaging
• 澳洲幸运5官方开奖结果体彩网:Supply chain management (SCM)
• Gaming
• Cinema
• Product design and development

Read on for a brief look at Nvidia's financials and details about four of its acquisitions.

Nvidia Financials

Nvidia went public on Jan. 22, 1999, issuing 3.5 million shares at $12 per share. It raised about $42 million during its 澳洲幸运5官方开奖结果体彩网:initial public offering (IPO) on Nasdaq. In March 2025, the company's 澳洲幸运5官方开奖结果体彩网:market capitalization was $2.96 trillion.

For the 2025 fiscal year (ending Jan. 26, 2025), Nvidia reported:

• Revenue of $130.5 billion compared to $60.9 billion in the previous year
• 澳洲幸运5官方开奖结果体彩网:Gross profit of $97.8 billion compared to $44.3 billion in the previous year
• 澳洲幸运5官方开奖结果体彩网:Net income of $72.8 billion compared to $30 billion in the previous year

The company has two operating segments: Graphics and Compute & Networking. The Graphics segment supplies GPUs for gaming, PC, enterprise workstation, and automotive applications.

Compute & Networking includes Data Center and AI applications as well as networking and cloud computing products and services.

The significant increase in revenue resulted from the Data Center's compute and networking platforms for accelerated computing and AI solutions plus demand for its Hopper and Blackwell architectures.

1. Run:ai

• Type of Business: AI Infrastructure Software
• Acquisition Price: $700 million (estimated)
• Date Purchased: Dec. 30, 2024

Run:ai is an open platform Kubernetes-based workload management and orchestration software provider. The software can manage and optimize the performance of Nvidia's GPUs, generative AI, recommender systems, search engines, and other major tasks.

Run:ai, which had worked with Nvidia since 2020, had large enterprise customers in different industries that used its software to manage data-center-scale GPU clusters. In fact, Nvidia had already integrated its software with a number of its containers and AI enterprise software.

Nvidia's acquisition of Run:ai was viewed as a way the former could consolidate its power in generative AI. Run:ai was founded in 2018 by Omni Geller and Ronen Dar and is headquartered in Tel Aviv, Israel.

2. Deci

• Type of Business: Deep Learning Software
• Acquisition Price: $300 million (estimated)
• Date Purchased: May 2024

Deci was purchased by Nvidia and incorporated into its corporate structure in May 2024. Its software auto𝓀mated the design of deep learning models to improve performance.

It will help Nvidia customers get more from their GPUs and AI servers as it condenses generative AI language models so that they are able to work more efficiently.

Prior to being acquired, Microsoft had begun building Deci into its cloud AI store Azure AI Studio. So Deci had served as competition for not only with OpenAI but with Meta and Nvidia, as well.

3. OmniML

• Type of Business: Large Language Optimization Technology
• Acquisition Price: Undisclosed
• Date Purchased: February 2023

OmniML s𒆙oftware compresses large language applications to enable them𝔉 to function on Edge devices. Edge devices include computers, smartphones, and other consumer devices.

It manages the difference in size between AI applications and many of the devices trying to run them. This has been a challenge for AI developers. OmniML facilitates the implementation and efficient running of AI on a variety of devices.

There was no mention by Nvidia of this purchase. However, OmniML had announced a partnership with Intel a month before the deal was made. Its acquisition makes it easier for Nvidia to maintain a strong foothold in the Edge market.

4. Mellanox Technologies

• Type of Business: Cloud Computing and Networking
• Acquisition Price: $6.9 billion
• Date Purchased: April 27, 2020

Nvidia’s purchase of cloud computing and networking company Mellanox Technologies was one of its largest acquisitions. The deal was notable becausꦍe it marked Nvidia’s first major expansion outs♛ide of GPUs and related technologies.

It dramatically strengthened Nvidia’s competitive position in high-performance computing because Nvidia and Mellanox power more than half of the world’s top 500 supercomputers.

Nvidia founder and 澳洲幸运5官方开奖结果体彩网:chief executive officer (CEO) Jensen Huang highlighted the two companies’ long-standing partnership and the dramatic emergence of AI and data science as reasons for the expansion.

The decision to buy the cloud computing and networking company may have been partly spurred by falling demand for Nvidia’s core graphics products late in 2018 amid a downturn in the price of 澳洲幸运5官方开奖结果体彩网:cryptocurrencies.

Regulatory Challenges Prevented Arm Acquisition

In 2020, Nvidia tried to expand into the smartphone market with a proposal to acquir🤡e Arm Ltd. for $40 billio🎶n.

Arm is a U.K.-based phone chips developer owned by Japan's SoftBank and its chips are found in 99% of the world's smartphones. The announcement was made in September 2020 and Softbank agreed to retain a stake in ARM of no more than 10%.

The announcement didn't pass without challenges. The 澳洲幸运5官方开奖结果体彩网:U.S. Federal Trade Commission🙈 (FTC) filed suit to block the acquisition to "preserve competition" in the computer chip market. The agency called it the "largest transaction in the history of the 澳洲幸运5官方开奖结果体彩网:semiconductor industry."

The proposed deal also drew in🔴creased regu꧒latory scrutiny in the U.K.

On Feb. 7, 2022, Nvidia and SoftBank canceled the 澳洲幸运5官方开奖结果体彩网:transaction. A year and a half later, on September 14, 2023, Arm went public at a $60 billion valuation on the Nasdaq.

The deal's termination was a notable setback for Nvidia, a company that has used past acquisitions to fuel its rapid growth. But it holds a $135.8 million dollar stake in the company.

Equity Holdings

Nvidia holds major stakes in a handful of public companies, listed below:

• Arm: Headquartered in Cambridge, U.K., designs, develops, and licenses CPU products and associated technologies for semiconductor companies
• Applied Digital Corp: Out of Dallas, Texas, designs and develops digital infrastructure solutions for high-performance computing companies
• Recursion Pharmaceuticals: Located in Salt Lake City, Utah, uses AI technologies to discover new drugs and treatments for rare diseases
• Nebius Group N.V.: Headquartered in Amsterdam, builds full-stack infrastructure for the global AI industry
  

The Bottom Line

As of the🌱 end of 2024, Nvidia had made several acquisitions that have positioned it to maintain a strategic and prominent role in numerous industries, especially AI.

As one of the most valuable firms in the world, Nvidia's acquisitions have broadened its capabilities for AI model training, data center solutions, graphics, high-performance computing, and a host of other technological advancements.