Nvidia invests $6 billion in open AI models: a response to China and a new round of the race
The race for dominance in artificial intelligence is reaching a new level. Nvidia, traditionally associated with chip manufacturing, is taking an unprecedented step aimed at strengthening the U.S. position in its rivalry with Chinese developments. This concerns a deal with the AI startup Poolside, valued at $6 billion. The goal is to create a powerful open-weight model capable of directly competing with Chinese giants such as DeepSeek and Kimi K3 from Moonshot AI.
The structure of the agreement is notable. Nvidia is not simply buying technology but investing in an ecosystem. In addition to $6 billion for licenses to AI models, the company plans to integrate more than 100 Poolside employees into its ranks and invest an additional $1 billion in development. This is a strategic move that echoes the recent acquisition of chip developer Groq for $20 billion, which also used a model of licensing and team absorption. This approach allows Nvidia not only to gain access to cutting-edge developments but also to control key talent.
Strategic Context and Washington's Pressure
Nvidia's actions are not just a business decision but a response to geopolitical challenges. In recent months, the U.S. administration has been actively discussing possible restrictions on the use of Chinese open-weight models. The release of Kimi K3, in which the White House saw signs of distillation of Anthropic's technologies, served as a trigger for intensifying the discussion. However, Nvidia, along with Meta and Microsoft, opposes the bans. In an open letter, 25 companies warned that restrictions would not strengthen U.S. leadership but would only push the market toward closed ecosystems, which in the long run would weaken innovation potential.
Nvidia's investment in open models is also a direct challenge to OpenAI and Anthropic. Open-weight models are significantly cheaper to operate and easier to customize, making them attractive to the corporate sector. By supporting this niche, Nvidia not only diversifies its portfolio but also stimulates demand for its own chips, creating a closed loop: more accessible AI — more computing — more GPU sales.
My analysis: This move by Nvidia is a brilliant play from a long-term strategy perspective. The company understands that the future lies with open models and is trying to lead this process to prevent AI from being monopolized by a narrow circle of closed developers. If the deal with Poolside succeeds, we will witness a paradigm shift where openness becomes the main competitive advantage.