Nvidia plans to invest in chip rival d-Matrix, competitor chooses to partner with Nvidia.

Nvidia plans to invest in d-Matrix, according to three people familiar with the matter. The seven-year-old company develops AI server chips and is itself a competitor to Nvidia. The proposed investment is one of Nvidia's moves to make its own technology compatible with rival chip designers and bring them into its dominant hardware ecosystem, even though Nvidia has recently expanded its market share against nearly all rivals. It also marks Nvidia's first investment in an AI inference chip startup since reaching a $20 billion licensing deal with Groq last December, indicating that Nvidia will not bet on just one such company. Three months ago, Nvidia said it was working with d-Matrix to make the two companies' chips work together, handling different parts of the same AI inference task to improve the efficiency of such computing.