SoundHound AI (NASDAQ:SOUN) stock is soaring about 75% today on news that Nvidia (NASDAQ:NVDA) has invested about $3.7 million in the small artificial intelligence (AI) company. SOUN’s system converts human speech directly into language that AI-powered computers can understand. Among its largest customers are Oracle (NYSE:ORCL), Square (NYSE:SQ), Hyundai (OTCMKTS:HYMTF), and Stellantis’ (NYSE:STLA) Jeep unit.
Nvidia’s Stakes in SOUN and Other Companies
Nvidia bought almost $3.7 million of SOUN stock last quarter, according to the chip giant’s Securities and Exchange Commission (SEC) filing, which was made public late yesterday. NVDA invested in SOUN in 2017 before the firm launched its IPO.
NVDA also revealed a $147.3 million in Arm Holdings (NASDAQ:ARM), which develops designs for the chips used in most smartphones and tablets. Arm also creates designs for chips used by data centers, and it has maintained that those products work well in tandem with NVDA’s AI chips. Nvidia tried to acquire Arm starting in 2020 but shelved the idea in 2022 after it received pushback from regulators.
Additionally, NVDA raised its stake in Recursion Pharmaceuticals (NASDAQ:RXRX) to $76 million from $50 million. Recursion uses AI to speed up the drug discovery process, and NVDA has stated that it could utilize the firm’s offerings to enhance the development of “AI models for drug discovery,” Reuters reported.
Finally, NVDA spent $380,000 on Nano-X Imaging (NASDAQ:NNOX), an Israel-based company that enables doctors to use AI to evaluate “chest and abdomen CT scans.”
The Price Action of SOUN Stock
The large Japanese investment bank, Softbank (OTCMKTS:SFTBY), disclosed in its own SEC filing that it had obtained about 1.1 million shares of SIUN last quarter. Soundhound was founded in 2005.
The shares have jumped 92% in the last month and 65% in the previous three months.
On the date of publication, Larry Ramer did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
