Nvidia is reportedly close to finalizing a $30 billion investment in OpenAI, scaling back from an earlier plan to invest as much as $100 billion in the ChatGPT maker, according to a report by the Financial Times.The AI chip giant is expected to participate in OpenAI’s new funding round, with a deal that could be concluded as early as this weekend, the report said, citing sources familiar with the matter.Nvidia declined to comment on the report.Funding Round Could Value OpenAI at $850 BillionThe upcoming funding round is said to value OpenAI at approximately $850 billion, underscoring the continued surge in capital flowing into artificial intelligence infrastructure and model development.Nvidia CEO Jensen Huang has previously stated that the company intends to make a “huge” investment in OpenAI, dismissing reports that Nvidia had paused or reconsidered its earlier $100 billion investment framework.In late January, Huang called suggestions of hesitation “complete nonsense,” reaffirming Nvidia’s commitment to backing OpenAI’s long-term expansion.Strategic Infrastructure InvestmentNvidia originally announced its intention in September to invest up to $100 billion to support OpenAI’s infrastructure buildout. The capital is expected to help finance the expansion of next-generation AI systems, including large-scale data centers equipped with high-performance GPUs.Huang has described OpenAI as “one of the most consequential companies of our time,” emphasizing Nvidia’s role in powering the underlying hardware stack behind generative AI systems.“Sam is closing the round, and we will absolutely be involved,” Huang said, referring to OpenAI CEO Sam Altman.Nvidia at the Center of the AI Infrastructure BoomNvidia has emerged as the dominant supplier of advanced processors used to train and operate large language models (LLMs), including OpenAI’s ChatGPT and Google’s Gemini.AI developers have directed a significant portion of recent funding into Nvidia’s GPUs, racing to construct data centers capable of supporting growing enterprise and consumer demand for AI services.The surge in AI investment continues despite signs of market caution, with billions being deployed into energy-intensive infrastructure to sustain what many see as the next technological supercycle.AI Capital Cycle Remains IntactWhile the reported $30 billion figure marks a scaled-back commitment relative to earlier headlines, the investment would still rank among the largest private funding allocations in technology history.The move reinforces Nvidia’s strategic alignment with OpenAI and signals continued conviction in the long-term growth trajectory of artificial intelligence infrastructure, even amid broader market volatility.
Catherine
