Nvidia Nears $20 Billion Investment in OpenAI as Valuation Approaches $830 Billion
Nvidia is reportedly close to finalizing a deal to invest approximately $20 billion in OpenAI, as part of a massive new funding round aimed at raising up to $100 billion, potentially valuing the artificial intelligence company at around $830 billion.
The deal remains in the final stages of negotiation, amid growing indications that both companies are seeking to deepen their strategic partnership at a time when global competition to dominate advanced AI technologies and supporting infrastructure is rapidly intensifying.
This move reflects a clear escalation by Nvidia to reinforce its position as a key provider of foundational technologies powering generative AI models, particularly as demand continues to surge for data center chips used in training and operating large-scale AI systems.
For its part, OpenAI is seeking long-term funding through this round to support its rapid expansion, accelerate the development of more advanced AI models, and broaden its enterprise and government-focused services, amid fierce competition among major global technology players.
The funding round has attracted strong interest from several major corporations and investment firms eager to establish direct partnerships with OpenAI, underscoring a growing consensus that investment in AI companies has become a strategic necessity to maintain technological leadership.
Previous negotiations between Nvidia and OpenAI stalled in recent months, delaying the agreement before talks resumed following a reassessment of investment terms and partnership structure.
At the same time, technical challenges have recently emerged in the relationship, after OpenAI raised concerns regarding the performance of some of Nvidia’s latest chips and began exploring potential alternatives—adding an additional layer of complexity to the negotiations.
Despite these challenges, Nvidia remains OpenAI’s most critical partner within its AI ecosystem, given OpenAI’s heavy reliance on Nvidia’s chips to power its models, strengthening the likelihood that the investment will move forward as part of a long-term strategic vision for both companies.
The development comes amid the largest investment wave in the history of the AI sector, as intelligent technologies become a central pillar of the global economy, making the potential deal a strong signal of the scale of future bets being placed on artificial intelligence.