Key points
- Nvidia plans a stake in an inference-chip rival
- d-Matrix is already building for Nvidia's racks
- The startup has sought a higher valuation
Nvidia (NVDA) plans to invest in d-Matrix, a startup that designs chips for running AI models, The Information reported on October 8. The investment is part of an effort by Nvidia to make its technology work with rival chip designs.
The size of the investment and the valuation weren't disclosed.
d-Matrix already plans to plug into Nvidia's racks
On September 10, d-Matrix said it would use Nvidia's NVLink Fusion to connect its next-generation Raptor chips to Nvidia's AI infrastructure, according to Nvidia. NVLink Fusion lets other companies' custom chips link directly to Nvidia hardware.
d-Matrix plans to use Nvidia's MGX rack design, Vera processors, and networking hardware. The systems would work alongside Nvidia GPU racks, including Vera Rubin NVL72.
"Demand for inference is soaring, but capital, time and energy remain finite," d-Matrix co-founder and CEO Sid Sheth said in the announcement.
Inference is the work of running a trained AI model to answer requests, as opposed to training it. MediaTek is also building chips on NVLink Fusion, and Nvidia agreed in August to buy $3.5 billion of MediaTek's convertible bonds.
d-Matrix sought a $5 billion valuation
d-Matrix was founded in 2019 and is based in Santa Clara, California. Its current products include Corsair inference accelerator cards, JetStream network cards, and Aviator software.
In November 2025, d-Matrix closed a $275 million Series C round at a $2 billion valuation, DCD reported. In July, d-Matrix was looking to raise more money at a $5 billion valuation.
Nvidia's Groq deal drew scrutiny
In December 2025, Nvidia struck a $20 billion deal to license technology from inference-chip startup Groq and hire its engineers. The Justice Department is investigating whether the deal was structured to avoid antitrust review, according to a September report.
Two former Groq engineers sued Groq's board in Delaware on October 2, arguing that the deal was a sale in everything but name.
Nvidia shares were at $234.38 in premarket trading at 9:27 a.m. ET on October 9, up 1.7% from the previous close.
