Prime Highlights:
- Nvidia is in advanced discussions to invest about $20 billion in OpenAI, signaling a major strategic commitment to the AI company.
- The move comes as OpenAI plans to raise up to $100 billion, attracting global tech and investment firms seeking access to its AI models.
Key Facts:
- OpenAI could be valued at around $830 billion in the current funding round, reflecting intense investor interest in leading AI platforms.
- Earlier negotiations between Nvidia and OpenAI stalled over concerns, but both companies reaffirm their long-term partnership in AI chip supply and investment.
Background:
Nvidia is nearing a deal to invest about $20 billion in OpenAI as part of the artificial intelligence company’s latest funding round, according to a source familiar with the matter. The discussions remain ongoing, and the deal has not yet been finalized.
OpenAI, the maker of ChatGPT, plans to raise to $100 billion in this funding round. Investors could value the company at around $830 billion, showing strong interest in leading AI platforms as competition in the field grows.
Several global technology and investment firms want to build closer ties with OpenAI. Companies such as Amazon and SoftBank are exploring partnerships, betting that strategic access to OpenAI’s models and tools will offer an edge in the fast-moving AI race.
Reports of Nvidia’s renewed talks come after earlier negotiations faced setbacks. In September, Nvidia was expected to invest up to $100 billion and supply data centre chips to OpenAI. However, that plan stalled after prolonged discussions and concerns raised by the chipmaker, delaying a deal that had been expected to close within weeks.
Nvidia Chief Executive Officer Jensen Huang has pushed back against suggestions of tension between the two companies. Speaking recently, he said Nvidia plans to make a “huge” investment in OpenAI, likely its largest ever. He also said the company would consider taking part in OpenAI’s future fundraising rounds and its eventual initial public offering.
The relationship has faced some strain in recent months. OpenAI has explored alternatives to some of Nvidia’s newer AI chips, according to earlier reports, which could complicate negotiations. However, OpenAI Chief Executive Sam Altman later said Nvidia continues to make the best AI chips available and remains a key long-term partner.
If completed, the investment would deepen Nvidia’s role in shaping the next phase of global AI development.
