Nvidia nears landmark OpenAI funding deal

Nvidia is close to finalizing a $30 billion investment in OpenAI, marking a significant move by the chipmaker to take an equity stake in one of its largest customers, according to a person familiar with the matter.

The proposed investment forms part of a broader fundraising round in which OpenAI is seeking to raise more than $100 billion, News.Az reports, citing Reuters.

The round would reportedly value the ChatGPT developer at approximately $830 billion, making it one of the largest private capital raises ever recorded.

SoftBank Group and Amazon are also expected to participate in the funding round.

The potential deal underscores the increasingly interconnected relationships among major technology companies competing to develop advanced artificial intelligence systems. Chip manufacturers, cloud service providers, and AI model developers are deepening both financial and strategic partnerships as the race for AI leadership intensifies.

The new investment structure would replace a prior commitment announced in September, under which Nvidia planned to invest up to $100 billion to support OpenAI’s use of its chips in data centers, the Financial Times reported on Thursday. Reuters had previously reported that Nvidia intended to make an initial $10 billion investment once a definitive agreement was reached for OpenAI to purchase Nvidia systems. However, negotiations took longer than anticipated by both sides, the source said.

According to the person familiar with the matter, OpenAI is expected to use a significant portion of the newly raised capital to purchase Nvidia’s chips, which are essential for training and deploying its artificial intelligence models. The individual requested anonymity because they were not authorized to speak publicly.

News.Az 

By Nijat Babayev