NVIDIA Corporation (NASDAQ:NVDA) is close to finalizing a $30 billion investment in OpenAI, a smaller sum than the $100 billion long-term commitment that the chipmaker had pledged in 2025, the Financial Times reported on Thursday.
The $30 billion will be part of a massive, $100 billion funding round for OpenAI that will value the ChatGPT maker at $830 billion after investment, the FT reported, citing people with knowledge of the matter. Reports earlier this week also said that OpenAI was close to completing the capital raise.
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Nvidia and OpenAI are in the final stages of negotiations, the report said, and the investment could be completed as early as this weekend.
OpenAI will reinvest much of its new capital into Nvidia hardware, the FT report said.
Nvidia’s backpedalling from its initial $100 billion commitment- seen over the past month– had sparked deep losses in U.S. technology and artificial intelligence stocks, as investors fretted over the long-term health of the AI sector, which has a high cash-burn rate.
Nvidia CEO Jensen Huang and OpenAI chief Sam Altman had attempted to downplay reports of strained relationships between the two companies.
Nvidia’s investment in one of its largest customers also sparked concerns over circular financing and a potential bubble in the AI sector.
OpenAI is also in talks with SoftBank Group Corp. (TYO:9984), Amazon.com Inc (NASDAQ:AMZN), Microsoft Corporation (NASDAQ:MSFT), and MGX- Abu Dhabi’s state-backed tech investment fund– over raising more funds.
