Nvidia Drops Crypto Startups to Back Artificial Intelligence Boom

After being in operation for more than 9 years, Nvidia’s Inception accelerator program has confirmed that companies associated with crypto are not eligible for it.. Other startups, like cloud service providers, consulting, outsourced development firms, and distributors, also do not qualify for the membership.. Nvidia is strategically shifting its investment operations from cryptocurrency-based projects to artificial intelligence (AI). This was revealed by crypto reporter Collin Wu, who shared details about the new qualification terms for Nvidia’s Inception program. Other projects, such as consulting firms, resellers, and public companies, are not eligible for the program.. The move aligns with Nvidia’s broader ambitions, including plans to build up to $500 billion worth of AI infrastructure in the United States over the next four years. This initiative reflects a growing trend of manufacturers expanding their presence in America amid rising trade tensions and tariffs.. Overview of Nvidia’s Inception Program. Nvidia’s Inception Program has become a global accelerator that supports startups in AI, data science, and related fields since it was launched in 2016. One of the key attractions of the program is that it has no cost or equity requirement, participation is completely free, and Nvidia does not take any equity stake in the startups.. The program provides access to technical resources through Nvidia’s Deep Learning Institute (DLI), which offers free self-study course credits and discounted instructor-led workshop prices on topics such as AI, data science, and accelerated computing. Members also receive hardware and software discounts, in addition to promotional prices on certain Nvidia products to allow them to create and enhance their solutions at lower costs.. Also, the program offers complimentary cloud credits to enable startups to build and test their applications in cloud environments. Startups must qualify with certain criteria to join the Inception Program: they must be properly incorporated, less than 10 years old, employ a developer, and possess an up-and-running website.. Nvidia’s History with Cryptocurrency Mining. Nvidia makes high-performance Graphics Processing Units (GPUs), which are essential not just for gaming and AI, but also for cryptocurrency mining, especially for coins like Ethereum (ETH), which historically relied on GPU-intensive proof-of-work algorithms. During major crypto booms, such as those in 2017 and 2021, demand for Nvidia GPUs surged as miners bought up cards in bulk.. To cater to the demand, Nvidia rolled out the Cryptocurrency Mining Processor (CMP) series in 2021 that was specifically tailored for mining purposes, and which had no display outputs. The idea was to split the market for gaming and mining, but CMPs didn’t quite get traction and never managed to quell the shortage problem as had been hoped. Nvidia also tried to thwart mining on its gaming GPUs by releasing Lite Hash Rate (LHR) versions of chips such as the RTX 3060.. Aside from technical hurdles, Nvidia also had legal troubles over how it reported crypto-related revenue. In 2022, the U.S. Securities and Exchange Commission penalized the company $5.5 million for failing to disclose that much of its 2017 gaming revenue was crypto-mining in nature. Its decision to exclude crypto-related startups from its Inception accelerator program reflects a firm focus on AI as its long-term strategic priority.