Nvidia Close To Finalizing $30 Billion Investment In OpenAI

Nvidia is close to finalizing a $30 billion investment into OpenAI that will replace the long-term $100 billion commitment agreed upon by the companies last year.

The deal, which may be finalized as soon as this weekend, is expected to be part of a new funding round for the AI startup that could value OpenAI at approximately $830 billion. OpenAI plans to reinvest a significant portion of the new funds into Nvidia's hardware, but the companies will not move forward with the previously announced $100 billion multi-year investment partnership from September.

The restructured investment shows the shifting dynamics between OpenAI and Nvidia, with the chipmaker taking a direct stake in one of its largest customers rather than committing to a long term purchasing arrangement. Nvidia's decision to invest rather than simply supply hardware gives it financial exposure to OpenAI's growth while securing a major revenue stream.

For OpenAI, the funding round at an $830 billion valuation would make it one of the most valuable private companies in history, though still below the $1 trillion target the company has floated for a potential IPO. The capital will primarily fund infrastructure expansion, with GPU purchases from Nvidia representing the largest single cost category.

The arrangement also highlights the concentration of power in the AI supply chain. Nvidia controls the majority of the high performance GPU market, and OpenAI represents one of its most significant customers. The $30 billion investment deepens that interdependence while giving Nvidia equity upside in the AI application layer.