NVIDIA (NVDA) Invests $150 million in Baseten

NVIDIA Corporation (NASDAQ:NVDA) is one of the Best Quantum Computing Stocks to Buy for 2026. On January 20, WSJ reported that the company is investing $150 million in Baseten, a startup that specializes in AI inference. Baseten has raised $300 million at a $5 billion valuation. This deal demonstrates NVIDIA Corporation (NASDAQ:NVDA)’s aggressive push into startups that are focused on inference amid the industry’s shift from training models to powering them at scale, noted WSJ.

NVIDIA Corporation (NASDAQ:NVDA) paid $20 billion in December to license the AI-inference technology from startup chip designer Groq. This deal reflected its hunger for cutting-edge chips, which can help speed up the model responses. Notably, Baseten is also engaged in providing support for NVIDIA Corporation (NASDAQ:NVDA)’s Nemotron 3 Nano, a high-accuracy and high-efficiency open AI model.

In a separate update, on January 12, NVIDIA Corporation (NASDAQ:NVDA) and Eli Lilly and Company announced a first-of-its-kind AI co-innovation lab, which is focused on applying AI to tackle some of the most enduring challenges in the broader pharmaceutical industry. The two companies plan to invest up to $1 billion in talent, infrastructure, and compute over 5 years to help the new AI co-innovation lab.

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.