Nvidia’s AI Investment Strategy Raises Questions About Chip Demand Inflation

Nvidia's aggressive $10 billion investment in AI startup Anthropic, alongside Microsoft's $5 billion commitment, underscores the chipmaker's deepening involvement in artificial intelligence infrastructure. The deal requires Anthropic to purchase $30 billion of Azure cloud computing power, further embedding Nvidia's hardware in the AI supply chain.

With 59 AI-related deals totaling $23.7 billion in 2025 alone—surpassing 2024's $22.8 billion investment—Nvidia has positioned itself as both financier and supplier to the AI ecosystem. This dual role has drawn scrutiny from analysts concerned about potential demand inflation for Nvidia's GPUs, particularly as tech stocks face pressure from AI bubble concerns.

CEO Jensen Huang defends the strategy as strengthening the AI development pipeline, though critics note the circular nature of funding companies that then purchase Nvidia hardware. The company's $53 billion in AI investments since 2020 creates both market dominance and dependency risks.