Nvidia in Talks to Invest Up to $30 Billion in OpenAI

According to Source, Nvidia is thinking about investing up to $30 billion in OpenAI, potentially value the startup at $730 billion pre-money.

The investment is separate from the $100 billion infrastructure agreement announced by OpenAI and Nvidia in September, according to a source familiar with the subject who asked not to be identified because the discussions are confidential. According to the individual, the $30 billion is not connected to any deployment milestones.

The September statement, which shook the tech sector and sparked a flurry of subsequent infrastructure agreements, revealed a plan for Nvidia to invest in OpenAI over several years as it brought additional supercomputing facilities online. A source told CNBC at the time that Nvidia’s first $10 billion investment would be made once its first gigawatt was completed.

Nvidia’s $30 billion investment in OpenAI differs from what was planned in September, but the business may still choose to engage in following rounds that follow that framework, according to the a person.

The $30 arrangement is not complete, and the terms are still subject to change, according to the person. The Financial Times was the first to cover the potential investment.

Nvidia has declined to respond.

Questions about the state of OpenAI and Nvidia’s $100 billion infrastructure agreement have risen in recent months, particularly when the Wall Street Journal reported in January that the project was “on ice.”

Nvidia previously stated in its quarterly financial report in November that there was “no assurance that we will enter into definitive agreements with respect to the OpenAI opportunity or other potential investments.”

OpenAI CEO Sam Altman attempted to dismiss concerns over the purchase, writing in a post on X that the business enjoys working with Nvidia and doesn’t “get where all this insanity is coming from.”

Nvidia CEO Jensen Huang also addressed the potential schism in an interview with CNBC’s Jim Cramer earlier this month, saying there was “no question” that the business will invest in OpenAI’s next investment round.

OpenAI is also in talks with additional investors about a fundraising round that might reach approximately $100 billion, according to CNBC. The talks have intensified in recent weeks, but they have yet to be concluded.

According to Source, the startup’s capital round might be divided into two parts, with strategic investors like as Amazon, Microsoft, and Nvidia leading the way. Other contributions from a larger group of investors would follow.