Nvidia is close to putting about $20 billion into OpenAI during the ChatGPT maker’s latest fundraising, Reuters reported, citing a person familiar with the talks. The investment is tied to a funding round that could raise as much as $100 billion for OpenAI.
Reuters reported last week that OpenAI is seeking a valuation of about $830 billion. That price would place it near the top of private technology companies and reflects how much capital is going into AI software and computing.
These conversations are not over, and no agreement has been signed. Bloomberg News also reported that Nvidia was nearing a deal, adding to attention around the discussions during a busy period for companies connected to AI.
Why Has The Deal Taken So Long To Come Together?
The Wall Street Journal reported that an earlier idea, discussed in September, involved Nvidia investing up to $100 billion in OpenAI and supplying data centre chips. That proposal stalled after Nvidia raised doubts, according to the report.
The Journal said the investment had been expected to close within weeks but talks stretched on for months. Reuters later confirmed that discussions continued, even as questions surfaced around chip performance and supply.
Nvidia chief executive Jensen Huang has denied any breakdown in relations. Speaking on Saturday, he said Nvidia planned to make a “huge” investment in OpenAI and described it as probably the largest investment the company has ever made.
Huang also told CNBC that Nvidia would look at OpenAI’s next fundraising and any future stock market listing, pointing to a long term commercial relationship rather than a one off deal.
More from News
- Yahoo Partners With AI Travel Platform Navan For Its Next Venture. Here’s What Its For
- India Expands Global Trade Footprint With Five New Agreements
- Investment In African Tech Startups Up Nearly 50%
- The Department Of Homeland Security Pressures Tech Firms To Reveal Data On Trump Critics: Is Big Tech’s Integrity At Risk?
- Experts Share: How Will Moltbook’s Rise Impact Online Experiences And Overall Tech World Going Forward?
- Spain Plans To Join In On Under 16 Social Media Ban
- Cybanetix Sees Record Growth In Recurring MDR Revenue, Powered By AI-Led Security Operations
- The Rise Of FinTok: How Social Media Is Replacing Banks For Gen Z Money Advice
How Do OpenAI And The AI Market View This Investment?
Reuters reported on Monday that OpenAI has been unhappy with some of Nvidia’s latest AI chips and has looked at alternatives since last year. That search for other options could complicate talks, given Nvidia’s control of much of the market for high end AI hardware.
OpenAI chief executive Sam Altman responded after the Reuters report, taking a positive tone. He said Nvidia makes “the best AI chips in the world” and added that OpenAI hopes to be a “gigantic customer for a very long time”.
The fundraising comes as other large technology groups chase closer ties with OpenAI. Reuters reported that Amazon and SoftBank Group are racing to build partnerships or investments, betting that closer ties could help them compete in AI.
The talks also come during a volatile period for shares tied to AI. News around funding, chip supply and customer demand has driven big market reactions in recent weeks, according to Reuters. Any confirmation of Nvidia putting $20 billion into OpenAI would be closely read as a signal about spending priorities at the top end of AI development.
A $20 billion investment would be an indication of how much importance Nvidia places on access to leading software customers as demand for computing power keeps rising. For OpenAI, backing from Nvidia at this scale would give reassurance to customers and investors during a period of intense competition across AI…
Both sides must still finalise terms. Until then, the proposed investment reflects how financial backing, computing supply and commercial relationships are becoming very much connected as AI development accelerates.
