Nvidia Reportedly Eyes $1B Investment in Figure AI to Diversify AI Demand

Nvidia is reportedly in discussions to invest an additional $1 billion into humanoid robot startup Figure AI at a pre-money valuation of $38 billion. The company has also committed $6 billion to license software and hire talent from startup Poolside to accelerate the development of its open-source Nemotron model ecosystem. Driven by concerns from CEO Jensen Huang over potential AI demand cooling and high client concentration—where three customers accounted for 44% of recent sales—Nvidia is using its cash reserves to cultivate a broader AI ecosystem. By supporting embodied AI and open foundation models, Nvidia aims to ensure continuous demand for its hardware across thousands of specialized applications. Nvidia holds approximately $99 billion in cash and securities, giving it the financial capability to fund startups developing both robotics hardware and customized software applications. This strategy reduces long-term financial risk from over-reliance on major foundation model providers like OpenAI.