Chip designer Nvidia is reportedly approaching an agreement to put roughly $20 billion into OpenAI’s current fundraising round, according to people familiar with the discussions. If completed, this would become one of Nvidia’s largest single equity commitments to date.
OpenAI, the creator of ChatGPT, is seeking to raise up to $100 billion in its newest funding push , which would value the artificial-intelligence company at around $830 billion, people briefed on the matter told Reuters. Other major technology firms, including Amazon and SoftBank Group, are also exploring ways to deepen their commercial and strategic ties with the AI startup, betting that closer connections will give them an edge in rapid AI industry competition.
While the latest Nvidia-OpenAI talks suggest the two sides are closing in on terms, the investment has not yet been finalized, and discussions are ongoing. Bloomberg News reported earlier that Nvidia was nearing a deal with the AI firm, but sources say details are still being worked out.
This development follows earlier reporting that Nvidia’s previously discussed plan to invest up to $100 billion and supply OpenAI with data center chips had stalled after internal questions within Nvidia about the scale of that commitment. The larger proposal was expected to conclude months ago but has seen prolonged negotiations.
Nvidia Chief Executive Jensen Huang has pushed back against suggestions of hostility between the companies, saying recently that Nvidia plans to make a “huge” investment in OpenAI that could be the firm’s largest ever. In interviews, Huang indicated that Nvidia would seriously consider participating in OpenAI’s next fundraising round as well as the startup’s eventual initial public offering.
Separately, Reuters reported that OpenAI has expressed dissatisfaction with some of Nvidia’s latest AI chips and has been exploring alternatives since last year, which adds a layer of complexity to the relationship. After those reports surfaced, OpenAI CEO Sam Altman said Nvidia produces “the best AI chips in the world” and expressed the hope that Nvidia would remain a “gigantic customer for a very long time.
