The five most valuable technology companies – Apple, Microsoft, Nvidia, Amazon, and Alphabet – have significant financial resources to invest in startups. Despite their strong financial position, with each company’s shares rising sharply last year, they didn’t engage in an investment frenzy in 2024. Collectively, these tech giants participated in 149 known startup financings of $1 million or more in 2024, marking a slight increase from 2023 but remaining the second-lowest total over the past five years.
Key Investment Trends
A significant portion of their investments was directed towards artificial intelligence companies. Notable deals included:
- OpenAI’s $6.6 billion October financing, led by Thrive Capital with participation from Microsoft and Nvidia
- Alphabet’s $5.6 billion investment in its autonomous driving spin-off Waymo
- Amazon’s $4 billion November investment in Anthropic
These investments, while substantial, were smaller than Microsoft’s $10 billion investment in OpenAI in 2023.
Investment Activity by Company
- Alphabet was the most active, participating in 87 known rounds, including significant investments in digital bank Monzo and data management platform Cribl
- Apple was the least active, with no disclosed rounds in 2024
- Nvidia, Microsoft, and Amazon fell somewhere in between
Outlook for 2025
As we enter the new year, there are positive indicators suggesting that the Big Five may continue or even increase their startup investments. These include:
- Flush cash reserves
- Historically strong stock prices
- Pressure to remain at the forefront of AI innovation
However, past behavior suggests that their ability to invest doesn’t necessarily translate to actual investments, as seen with Apple’s reluctance to participate in startup funding.
