Nvidia disclosed it built a stake worth more than $147 million in SoftBank Group-owned Arm, two years after it walked away from a deal to acquire the chip designer outright for $40 billion.

In a filing with the US Securities and Exchange Commission (SEC), Nvidia disclosed the investment in Arm along with a stake worth $3.7 million in SoundHound AI and an investment of $76 million in biotech company Recursion Pharmaceuticals.

SoundHound AI creates software for audio recognition and Nvidia invested in the company in the past.

After Nvidia’s deal to acquire Arm fell through, SoftBank raised almost $5 billion through an IPO of the chip unit and pinned its hopes on it to benefit from AI.

It recently raised Arm’s full year revenue forecast by 5 per cent to $3.2 billion, on the back of rising demand for AI chips.

AI chips are an area Nvidia has cashed-in on significantly in recent times, resulting in a surging share price.

Reuters reported Nvidia controls 80 per cent of the high-end AI chip market.