Prime Highlights:
- Nvidia is in active discussions to invest up to $30 billion in OpenAI as part of a new funding round that could value OpenAI at $730 billion pre-money.
- The proposed investment would be separate from the previously announced $100 billion AI infrastructure agreement, and would not be tied to construction or deployment milestones.
Key Facts:
- The broader funding round could total around $100 billion and may close in two stages, beginning with strategic investors including Amazon, Microsoft, and Nvidia before expanding to institutional backers.
- OpenAI CEO Sam Altman and Nvidia CEO Jensen Huang have publicly reaffirmed their partnership, though neither company has officially confirmed the new $30 billion investment discussions.
Background:
Nvidia is in active talks to invest up to $30 billion in OpenAI as part of a new funding round that could value the artificial intelligence startup at $730 billion before fresh capital is added. A source familiar with the talks confirmed that the companies are in discussions, but said the details are still being worked out and may change.
The proposed $30 billion investment stands apart from the $100 billion infrastructure agreement that Nvidia and OpenAI announced in September. That earlier plan focused on building large-scale AI supercomputing facilities over several years. Under that structure, Nvidia planned to invest in phases as OpenAI brought new gigawatt-level computing capacity online. At the time, a source said Nvidia would invest its first $10 billion upon completing its first gigawatt project.
The new talks do not tie the $30 billion investment to any construction or deployment milestones. Instead, the funding would form part of OpenAI’s broader capital raise, which could total around $100 billion. Reports suggest the round may close in two stages, starting with strategic investors such as Amazon, Microsoft and Nvidia, followed by other institutional backers.
Speculation about the earlier $100 billion infrastructure agreement increased after reports in January claimed the deal had slowed. Nvidia previously stated in a quarterly filing that there was no assurance it would finalize agreements related to the OpenAI opportunity.
OpenAI CEO Sam Altman publicly dismissed concerns about tensions, stating that the company values its partnership with Nvidia. Nvidia CEO Jensen Huang also recently said he expects Nvidia to participate in OpenAI’s next funding round.
Neither company has officially confirmed the new $30 billion investment discussions.