Nvidia is in talks to invest up to $30 billion in OpenAI, source says

Nvidia is reportedly in negotiations to invest as much as $30 billion in OpenAI, an endeavor that may value the artificial intelligence firm at an impressive $730 billion in pre-money valuation, according to sources familiar with the situation. This potential investment is distinct from the previously announced $100 billion infrastructure agreement between the two companies made in September, as confirmed by a source who requested anonymity due to the confidential nature of the discussions. The proposed $30 billion investment is not contingent upon any specific deployment milestones, the source indicated. The September agreement had already sent shockwaves through the tech industry, leading to a series of subsequent infrastructure deals. This arrangement outlined a multi-year investment plan in which Nvidia would funnel resources into OpenAI as new supercomputing facilities came online. In earlier reports, it was noted that Nvidia's initial $10 billion investment would be activated upon the completion of its first gigawatt facility. While the $30 billion deal diverges from those earlier plans, Nvidia may still opt to contribute to future funding rounds that align with the original investment framework, the source added. However, this investment is still in the negotiation phase and is subject to change. The Financial Times was the first to bring attention to this potential investment, while Nvidia has chosen not to comment on the matter. Uncertainty surrounding the status of the OpenAI and Nvidia $100 billion infrastructure agreement has been a topic of discussion in recent months, particularly following a January report from the Wall Street Journal suggesting that the deal was currently stalled. Nvidia had previously expressed caution during its quarterly financial report in November, indicating that there was "no assurance" of entering into definitive agreements regarding the OpenAI opportunity or other investments. OpenAI's CEO, Sam Altman, attempted to quell concerns regarding the deal by affirming their ongoing collaboration with Nvidia, stating he was puzzled by the surrounding speculation. Additionally, Nvidia's CEO, Jensen Huang, addressed the situation during a recent CNBC interview, affirming that the company intends to invest in OpenAI's forthcoming funding round. OpenAI is concurrently engaging with other investors, with the total funding round potentially reaching around $100 billion. While discussions have intensified in recent weeks, no agreements have been finalized yet. The funding round may be structured in two stages, starting with investments from strategic partners like Amazon, Microsoft, and Nvidia, followed by contributions from a wider array of investors.