Nvidia is close to finalizing a deal to invest around $20 billion in OpenAI as part of the AI company’s latest funding round, according to a source familiar with the matter.
OpenAI, the creator of ChatGPT, is seeking to raise up to $100 billion, a move that would value the company at roughly $830 billion, Reuters reported last week. The scale of the round underscores investor appetite for leading artificial intelligence platforms.
Major technology groups, including Amazon and SoftBank Group, are racing to deepen ties with OpenAI, betting that strategic partnerships will deliver a competitive edge in the accelerating AI arms race.
The potential Nvidia investment has not yet been finalized, the source cautioned, despite earlier reports from Bloomberg that the chipmaker was nearing an agreement with OpenAI.
The renewed talks follow reports from the Wall Street Journal that Nvidia’s earlier plan to invest as much as $100 billion and supply data-center chips stalled after concerns emerged internally, delaying negotiations that were initially expected to conclude within weeks.
Nvidia Chief Executive Jensen Huang has denied any dissatisfaction with OpenAI, stating recently that Nvidia plans to make a “huge” investment, potentially its largest ever. He also told CNBC the company would consider participating in OpenAI’s future fundraising rounds and a possible IPO.
Still, the relationship has faced scrutiny. Reuters reported that OpenAI has explored alternatives to some of Nvidia’s latest AI chips, a claim later softened by OpenAI CEO Sam Altman, who praised Nvidia’s hardware as “the best AI chips in the world” and said OpenAI expects to remain a major customer for years to come.
