Nvidia is reportedly close to investing around $20 billion in OpenAI as part of the startup’s latest funding round, according to a source familiar with the matter. ChatGPT’s creator is seeking to raise up to $100 billion in this round, which would value the company at roughly $830 billion.
Competition Heats Up for AI Partnerships
Tech giants such as Amazon and SoftBank Group are also pursuing closer ties with OpenAI, hoping that stronger partnerships with the artificial intelligence company will give them an advantage in the rapidly growing AI sector.
Deal Not Yet Finalized
The Nvidia-OpenAI agreement is still under negotiation. Earlier reports indicated that Nvidia had planned to invest $100 billion in September and supply OpenAI with data center chips, but those plans stalled as the chipmaker expressed concerns. Negotiations have stretched on for months, delaying the expected closure of the deal.
Nvidia CEO Confirms Major Investment Plans
Nvidia CEO Jensen Huang has denied any disagreement with OpenAI, stating that the company intends to make a “huge” investment, likely the largest in its history. Huang also mentioned that Nvidia would consider participating in OpenAI’s next funding round and its eventual initial public offering.
Ongoing Technical Considerations
OpenAI has reportedly been evaluating alternatives due to dissatisfaction with some of Nvidia’s latest AI chips, a situation that could complicate their partnership. Despite this, OpenAI CEO Sam Altman praised Nvidia, calling its chips “the best AI chips in the world” and expressing hope that Nvidia will remain a “gigantic customer for a very long time.”
