Nvidia Nears $30 Billion Investment in OpenAI, Scales Back Initial Plan

 

Nvidia Nears $30 Billion Investment in OpenAI, Scales Back Original $100 Billion Plan

Nvidia is reportedly close to finalizing a $30 billion investment in OpenAI, significantly scaling down an earlier plan to invest as much as $100 billion in the artificial intelligence firm, according to a report by the Financial Times.

Citing sources familiar with the discussions, the report said Nvidia is expected to participate in OpenAI’s latest funding round, with a potential agreement that could be reached as early as this weekend.

Nvidia declined to comment on the report.

From $100 Billion to $30 Billion

The AI chipmaker had initially announced plans in September to invest up to $100 billion in OpenAI, a move aimed at helping the ChatGPT creator expand infrastructure for next-generation artificial intelligence systems.

However, reports in January suggested that the larger investment plan had been paused. Nvidia CEO Jensen Huang later dismissed speculation that the company had cooled on OpenAI, calling such claims “complete nonsense.”

Huang reiterated that Nvidia remains committed to investing heavily in OpenAI, describing it as “one of the most consequential companies of our time.”

“Sam is closing the round, and we will absolutely be involved in the round,” Huang said, referring to OpenAI CEO Sam Altman. “We will invest a great deal of money.”

The latest funding round is reportedly expected to value OpenAI at approximately $850 billion.

Nvidia’s Expanding AI Influence

Nvidia has emerged as a central player in the global AI boom, supplying the high-performance graphics processing units (GPUs) required to train and operate large language models (LLMs) such as ChatGPT and Google Gemini.

AI developers, including OpenAI, have directed substantial portions of their funding toward Nvidia’s processors as they race to build large-scale, GPU-powered data centers capable of handling surging demand for AI services.

The continued investment highlights the sustained momentum behind artificial intelligence, despite signs of caution in financial markets over the scale of spending on data centers and energy-intensive computing infrastructure.

With OpenAI at the forefront of generative AI development and Nvidia dominating the chip supply chain, the partnership between the two companies remains one of the most closely watched alliances in the technology sector.