Nvidia is taking its case for a positive view of artificial intelligence overseas. The chip maker is investing in AI start-ups and safety as it looks to head off a potential backlash against the technology.
Nvidia shares were down 0.5% at $227.31 in premarket trading. The company was being hit by a wider slump in the semiconductor sector as it gears up for its GTC event in Berlin on Oct. 20-22.
As normal when Nvidia heads abroad, it has launched a flurry of investments and partnerships with local companies and authorities. At an event in Paris on Tuesday, Nvidia CEO Jensen Huang announced the company had committed nearly $10 billion overall to Europe's technology ecosystem, and that it had taken stakes in four French start-ups.
Nvidia also said it would donate computing power valued at $250 million over five years to support U.K. agentic safety and security research. Huang said the donation would allow researchers to "develop, test, and strengthen safeguards" for more powerful AI.
AI safety is a wise investment for Nvidia. The biggest risk for the chip company is regulation, which would limit purchases of its AI processors for training new models or lead to additional costs and deter smaller rivals from buying AI chips in an effort to catch up with OpenAI and Anthropic.
As Barron's has previously written, Nvidia's strategy is to fuel a system of millions of developers who use its hardware, boosted by its recent acquisition of AI development platform Hugging Face, which was founded by French entrepreneurs. Europe is essential to have onside, both as a source of customers and as its digital regulations often end up shaping global standards.
Expect yet more spending as the focus moves to the GTC event in Berlin next week. With its huge cash flows, Nvidia can afford to flex its financial muscle as it looks to fuel the AI ecosystem around the world.
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