TLDR
- Nvidia is in talks to invest up to $30 billion in OpenAI as part of a funding round valuing the startup at $730 billion pre-money.
- The deal replaces a previously outlined $100 billion long-term infrastructure agreement between the two companies.
- OpenAI is expected to use much of the proceeds to buy Nvidia’s AI chips and hardware.
- The broader funding round could total over $100 billion, with Amazon and Microsoft also involved.
- NVDA stock edged up roughly 1% following the report.
Nvidia is in talks to make a $30 billion equity investment in OpenAI, according to a report from the Financial Times confirmed by CNBC.
The deal would be part of a larger funding round that could total more than $100 billion and value OpenAI at around $730 billion before the new capital comes in.
This investment is separate from the $100 billion infrastructure agreement Nvidia and OpenAI announced back in September. That earlier deal tied Nvidia’s investment to the rollout of new supercomputing facilities.
The new $30 billion figure is not linked to any deployment milestones, according to a source familiar with the matter.
Questions had been swirling about the original deal after the Wall Street Journal reported in January that it was “on ice.” Nvidia’s November quarterly report had also flagged uncertainty, stating there was “no assurance” it would close the OpenAI deal.
OpenAI CEO Sam Altman pushed back on those concerns in a post on X, saying the company “loves working with Nvidia” and that he didn’t understand the worry.
Nvidia CEO Jensen Huang was more direct. Speaking to CNBC’s Jim Cramer earlier this month, he said there was “no question” Nvidia would invest in OpenAI’s next funding round.
A Revised Structure
The shift from the September framework is meaningful. Rather than a phased capital commitment tied to infrastructure milestones, the new deal is a straightforward equity stake.
OpenAI is expected to direct a large portion of the funds toward purchasing Nvidia’s AI chips and hardware — keeping the commercial relationship intact even as the financial structure changes.
The deal could close as early as this past weekend, per the Financial Times report, though details are still being finalized and remain subject to change.
Other Investors Involved
OpenAI’s broader round is expected to close in two phases. The first involves strategic investors like Amazon, Microsoft, and Nvidia. A wider pool of investors would contribute in a second phase.
Nvidia declined to comment on the discussions.
NVDA stock rose about 1% in morning trading on Thursday following the initial report.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
