NVIDIA plans to invest $20 billion in OpenAI. If the deal is finalized, it will become the largest single investment in its history. OpenAI is seeking to raise up to $100 billion in a new round of financing, with major tech companies such as Amazon and SoftBank Group participating as investors. Jensen Huang stated that NVIDIA “will definitely participate,” dispelling previous rumors of strained relations.
$NVIDIA (NVDA.US)$ NVIDIA is nearing a $20 billion investment in OpenAI's new funding round. If completed, this transaction would become the largest single investment by the chipmaker to date and further promote collaboration between the two core AI companies.
According to Bloomberg citing sources familiar with the matter, NVIDIA’s funding is close to completion, but the deal has yet to be finalized, and terms may still change. Both OpenAI and NVIDIA declined to comment.
OpenAI is seeking to raise up to $100 billion in a new round of financing. According to a previous Bloomberg report, Amazon has discussed investing up to $50 billion, while SoftBank Group has been negotiating a potential investment of up to $30 billion.
Amid market concerns over whether tensions between the two companies are escalating (following internal doubts at NVIDIA over OpenAI’s $100 billion investment), Jensen Huang told reporters in Taipei that NVIDIA will definitely participate in OpenAI’s next round of financing. He described it as a “very good investment” and possibly “the largest investment we have ever made.”
The deal is nearing completion but remains subject to change.
According to Bloomberg citing unnamed sources familiar with the matter, NVIDIA’s planned $20 billion investment in OpenAI is “close to completion.” Since the information has not yet been made public, the sources noted that the deal has not been finalized, and relevant terms may still be adjusted.
Publicly, both parties remain cautious. According to Bloomberg, OpenAI declined to comment, and NVIDIA also refused to provide any remarks.
OpenAI accelerates efforts to secure up to $100 billion in funding, with investments from major tech giants forming the backbone.
The target scale for OpenAI’s current round of financing has significantly expanded to a maximum of $100 billion. According to Bloomberg, a substantial portion of the funding will come from large technology firms.
Among potential investors, $Amazon (AMZN.US)$ the scale of investment under discussion could reach up to $50 billion for certain parties, while SoftBank Group’s discussed investment could reach up to $30 billion. Additionally, as previously reported by the Financial Times, NVIDIA may invest up to $20 billion, consistent with the near-final amount disclosed by Bloomberg this time.
Following rumors of tension, senior executives from both sides publicly expressed their commitment to continuing cooperation.
NVIDIA and OpenAI have long been regarded as pivotal forces driving the AI boom, but their relationship has recently drawn significant attention, with the market closely watching whether their partnership might falter due to disagreements.
According to a report by The Wall Street Journal last Friday, NVIDIA’s plan announced in September last year to invest up to $100 billion in OpenAI has stalled, with internal concerns arising over OpenAI's business model, strategic direction, and competitive market risks; raising market concerns about tensions between the two companies.
However, thereafter, the CEOs of both companies publicly stated their continued commitment to cooperation.
Jensen Huang’s latest statement further reinforced this signal. Speaking to reporters in Taipei, he said that NVIDIA will participate in OpenAI’s next round of financing and emphasized that this could become NVIDIA's 'largest investment ever.'
For investors, the key focus is on the 'capital commitment' and the strength of the partnership.
If the $20 billion investment ultimately materializes, it would not only signify NVIDIA’s stronger capital endorsement of OpenAI’s commercial prospects but also provide a quantifiable commitment to cooperation following external skepticism.
Against the backdrop of OpenAI’s current financing round potentially reaching $100 billion, the funding intentions and statements from financial backers such as NVIDIA, Amazon, and SoftBank Group are becoming a crucial observation window for investors assessing the stability of collaboration among key participants in the AI supply chain.
Editor/Jayden