Nvidia nears $20 billion investment in OpenAI amid high-stakes AI funding push

The proposed investment, which could become Nvidia’s largest-ever bet, comes as OpenAI seeks massive funding to fuel growth, even as reports of prolonged negotiations and strategic tensions continue to surface.

Nvidia is close to finalising a major investment of around $20 billion in OpenAI as part of the artificial intelligence firm’s latest fundraising round, according to reports citing people familiar with the discussions. If completed, the deal would mark one of the most significant financial commitments Nvidia has ever made in the rapidly expanding AI sector.

OpenAI, the company behind ChatGPT, is seeking to raise as much as $100 billion in fresh capital. The funding round is expected to place the company’s valuation at approximately $830 billion, underscoring its growing influence in the global AI landscape. Several large technology and investment firms are keen to secure closer ties with OpenAI, viewing strategic partnerships as critical to gaining an edge in the intensifying AI race.

Alongside Nvidia, companies such as Amazon and SoftBank Group are reported to be exploring investments or partnerships with OpenAI. Industry observers say these moves reflect increasing competition among major players to align themselves with leading AI developers as demand for advanced models and infrastructure accelerates.

Talks continue amid strategic uncertainty

Despite the scale of the proposed investment, the Nvidia–OpenAI deal has not yet been finalised. Negotiations, which were initially expected to conclude within weeks, have stretched over several months. Earlier reports suggested that Nvidia’s plans, announced last September, to invest up to $100 billion in OpenAI and supply large volumes of data centre chips had slowed after internal concerns were raised within the chipmaker.

Nvidia chief executive Jensen Huang has dismissed suggestions of friction between the two companies. Speaking recently, Huang said Nvidia intends to make a “huge” investment in OpenAI, potentially its largest ever, and reaffirmed the company’s long-term commitment to the partnership. He also indicated that Nvidia would consider participating in OpenAI’s future funding rounds and a possible initial public offering.

Recent reports have pointed to potential challenges in the relationship, including claims that OpenAI has been evaluating alternatives to some of Nvidia’s latest AI chips. Such developments could complicate negotiations, given Nvidia’s central role as a leading supplier of AI hardware.

However, OpenAI chief executive Sam Altman has publicly downplayed concerns, praising Nvidia’s products and describing the company as a key long-term partner. Altman said OpenAI hopes to remain a major customer of Nvidia’s technology for years to come.

As discussions continue, the proposed investment highlights both the enormous financial stakes and the strategic importance of partnerships shaping the future of artificial intelligence.