NVIDIA (NVDA) Expands AI Leadership with SchedMD Acquisition and Open-Source Focus

NVIDIA Corporation (NASDAQ:NVDA) ranks among the best AI stocks to buy according to analysts. NVIDIA Corporation (NASDAQ:NVDA) announced on December 15 that it had purchased AI software company SchedMD in an effort to combat growing competition by doubling down on open-source technologies and increasing investments in the artificial intelligence ecosystem.

SchedMD is the company that created Slurm, an open-source workload manager that is vital in high-performance computing (HPC) and large-scale artificial intelligence applications. NVIDIA Corporation (NASDAQ:NVDA) affirmed that Slurm will remain open source and vendor-neutral following the acquisition. As a result, the software will remain appropriate for varied setups containing hardware from various vendors.

In recent months, NVIDIA Corporation (NASDAQ:NVDA) has sought to expand its open source and open AI products.

At the beginning of December, the company launched Alpamayo-R1, a new open reasoning vision language model aimed at autonomous driving research. NVIDIA Corporation (NASDAQ:NVDA) also stated at the time that it had introduced new workflows and guidance for its Cosmos world models, which are open source according to a permissive license, helping developers better leverage the models to construct physical AI.

NVIDIA Corporation (NASDAQ:NVDA) designs and sells specialized processors, initially for gaming but now also crucial for AI, data centers, professional visualization, and the automotive industry.

While we acknowledge the potential of NVDA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.