The reigning monarch of computing power is not content with merely 'selling shovels' in the AI gold rush; it is now stepping directly into the fray, aiming to dominate both the hardware and software frontiers of artificial intelligence.

While the global tech community remains captivated by NVIDIA's latest GPU, a powerhouse of computational might, the chip behemoth has quietly pivoted, surging into the depths of AI software development. Two recent announcements have illuminated its grand ambitions: firstly, plans to invest in AI search and intelligent agent upstart Perplexity, and secondly, a substantial investment to acquire the technology and talent of AI programming startup Poolside.

NVIDIA is on a mission to demonstrate to the world that its destiny lies far beyond the confines of a mere hardware company.

Betting Big on Perplexity: A Strategic Leap from Chips to Applications

Media reports indicate that NVIDIA is in discussions to participate in Perplexity's upcoming funding round, with the latter's valuation poised to exceed $30 billion, marking a 50% surge from the previous year. Who, then, is Perplexity? Established in 2022, it initially focused on AI search and has since witnessed its fortunes soar with the advent of its AI agent product, 'Perplexity Computer', with annualized revenue skyrocketing from less than $250 million at the start of the year to over $750 million.

This innovative product can autonomously execute intricate tasks on computers, directly challenging similar offerings from OpenAI and Anthropic. As AI transitions from mere 'conversation' to 'action', Perplexity has carved out a prime position in the application layer.

For NVIDIA, the allure of this investment lies in its dual benefits: it is not merely a financial venture but also a strategic partnership. In July, Perplexity announced its adoption of NVIDIA's new CPU chips, aiding its foray into the CPU market dominated by Intel and AMD. Through this investment, NVIDIA is forging a deep bond between its hardware and top-tier AI application gateways, evolving from a foundational computing power provider to an AI ecosystem 'architect.'

Acquiring Poolside: A Dual Strategy of Talent and Technology Integration

If investing in Perplexity represents 'staking a claim,' then the deal with Poolside signifies 'strengthening the ranks.'

NVIDIA has agreed to pay $6 billion for the rights to utilize Poolside's AI models and invest an additional $1 billion at a pre-money valuation of $12 billion, while extending job offers to over 100 employees involved in the development of its open-source model, Laguna.

Poolside specializes in AI for software development, with technology capable of serving high-security environments. This transaction is a win-win: it not only absorbs a top-tier AI R&D team, providing a significant boost to its open-source model project, Nemotron, but also expands its AI model portfolio through technology licensing. Especially when combined with its aggressively deployed open-source small language models, NVIDIA is constructing a comprehensive closed-loop ecosystem of 'chips + models + developer tools.'

NVIDIA's Grand Vision: Crafting a 'Wintel' Alliance for the AI Era

Reflecting on the PC era, the alliance between Microsoft and Intel shaped the entire ecosystem. Now, NVIDIA is striving to emulate and surpass this model in the AI age.

It recognizes that the ultimate battleground for AI lies not in chip fabrication facilities but in application scenarios. By investing in application-end companies like Perplexity and forging deep ties with model developers like Poolside, NVIDIA can ensure its hardware is embraced by the most cutting-edge applications while embedding its technical standards and open-source model ecosystem into the very fabric of the AI industry.

Once its Nemotron open-source model system is seamlessly integrated with its hardware, forming a formidable moat akin to CUDA, developers will find it challenging to stray from its ecosystem. By then, regardless of how upper-layer applications evolve, NVIDIA will remain steadfast.

Of course, this grand strategy is not devoid of risks. The intelligent agent sector, where Perplexity operates, is already a crowded marketplace, facing direct competition from industry giants like OpenAI. Moreover, the $6 billion spent on model licensing and talent acquisition, a move akin to a 'quasi-acquisition,' has also drawn scrutiny.

Nevertheless, NVIDIA has drawn its proverbial sword. It is no longer satisfied with being a mere 'shovel seller' in the AI gold rush but aspires to become the rule-maker, shaping the entire landscape of AI development.

Perhaps this is the ultimate chapter in Jensen Huang's grand vision for NVIDIA's narrative.