"Nvidia close to investing $30 billion in OpenAI…replacing prior $100 billion commitment"

Doohyun Hwang

Summary

Nvidia is in the final stages of coordinating a plan to invest $30 billion in OpenAI, a structure that would replace a $100 billion investment commitment, according to the report.
The $30 billion investment is part of OpenAI’s new fundraising round and could be finalized as early as this weekend, the report said.
OpenAI plans to reinvest a significant portion of the funds raised into purchases of Nvidia’s AI chips and infrastructure, and the two sides have decided not to proceed with the multi-year $100 billion investment partnership, the report said.

Nvidia is reportedly in the final stages of coordinating a plan to invest $30 billion in OpenAI. The move is structured to replace the long-term $100 billion investment commitment the two sides agreed to last year.

On the 19th (local time), the Financial Times (FT), citing multiple sources, reported that Nvidia (NVDA) is in the closing stages of finalizing a $30 billion investment in OpenAI. The investment is part of OpenAI’s new fundraising round and could be finalized as early as this weekend, the report said.

In January, OpenAI pursued fundraising of up to $100 billion based on an implied valuation of about $830 billion. OpenAI, the developer of ChatGPT, is said to plan to reinvest a significant portion of the capital raised into purchases of Nvidia’s AI chips and infrastructure.

However, according to the FT, the two companies have decided not to proceed with the multi-year $100 billion investment partnership announced in September last year. Instead, they are said to have pivoted to restructuring the funding framework through this new financing round.