US chipmaker Nvidia is reportedly preparing to invest about $30 billion in OpenAI, significantly scaling back an earlier plan that envisioned a commitment of up to $100 billion to the creator of ChatGPT, according to a report published Thursday by the Financial Times.
The newspaper, citing sources familiar with the discussions, said Nvidia is expected to participate in OpenAI’s latest fundraising round, with an agreement potentially being finalized as early as this weekend. Nvidia declined to comment on the report when contacted.
Nvidia chief executive Jensen Huang has previously emphasized that the company intends to make a substantial investment in OpenAI and rejected suggestions that he was dissatisfied with the artificial intelligence firm.
In late January, Huang dismissed as “nonsense” reports that Nvidia had paused its plan to invest up to $100 billion in the company, following a report by the The Wall Street Journal indicating that the proposal had been put on hold.
Nvidia first revealed the broader investment plan in September, presenting it as part of a strategy to help OpenAI expand the infrastructure required for the next wave of advanced artificial intelligence systems. The current funding round is said to value OpenAI at approximately $850 billion, underscoring the company’s rapid ascent in the global technology sector.
Addressing reporters, Huang described any suggestion that Nvidia harbored doubts about backing OpenAI as “complete nonsense.” He reaffirmed that Nvidia would take part in the capital raise, calling OpenAI “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 chief executive Sam Altman. “We will invest a great deal of money.”
Nvidia has emerged as the dominant supplier of advanced graphics processing units used to train and run large language models, the systems that power chatbots such as OpenAI’s ChatGPT and Google’s Gemini.
Developers of these models, including OpenAI, have funneled large portions of their investment capital into Nvidia’s chips, racing to construct expansive data centers packed with high-performance GPUs in anticipation of surging demand for AI-driven services.
The rapid expansion of artificial intelligence infrastructure has fueled a wave of spending on data centers and energy-intensive processors.
Despite emerging concerns in financial markets about the sustainability of the AI boom, investment momentum remains strong as technology firms compete to secure computing capacity and maintain their lead in generative AI development.
What you should know
Nvidia is reportedly preparing a $30 billion investment in OpenAI as part of a new funding round that could close soon.
The move represents a scaled-back version of a previously discussed $100 billion plan. The funding round is said to value OpenAI at around $850 billion. Nvidia’s CEO Jensen Huang has denied reports of hesitation and reaffirmed the company’s commitment to investing heavily in the AI firm.
Nvidia remains a key supplier of chips used to power large language models and the expanding global AI infrastructure.
