NVIDIA is on the verge of finalizing a scaled-down investment of $30 billion in OpenAI, according to multiple sources. This investment is part of a series of funding events for OpenAI occurring in Q1 2026. This move will replace the long-term $100 billion commitment to OpenAI, which the companies agreed to last year. The deal would be a part of a new funding round for the artificial intelligence start-up and is reported to commence as early as this weekend.
Jensen Huang Signals Continued Commitment
In September, ChatGPT maker OpenAI sought to raise $100 billion, valuing the company at about $830 billion. Though this plan is dismissed now, OpenAI will reinvest much of its new capital into Nvidia hardware. The announcement in September significantly boosted the tech sector, triggering a wave of subsequent infrastructure deals. This massive momentum outlined a structure where Nvidia would invest in OpenAI over many years as it made available new supercomputing facilities online. However, Nvidia’s $30 billion investment in OpenAI differs from what was contemplated in the September announcement. The deal can be subject to changes as it is not finalized.
In recent months, there was a swirling pressure on OpenAI’s and Nvidia’s $100 billion investment, especially after the Wall Street Journal reported in January that the deal was “on ice”. However, the CEO of OpenAI, Sam Altman, sidestepped the concerns about the deal through an X post, where he signaled that the deal remains on track and expressed bewilderment at the surrounding speculation. Furthermore, Nvidia’s CEO, Jensen Huang, also addressed the issue and signaled a potential rift. Despite the scaling back from long-term investment, Jensen Huang has insisted that the company will remain committed to OpenAI and addressed it as “one of the most consequential companies of our time.“
Momentum Builds Amid Ongoing Negotiations
Generative AI is the core technology sector that is driving the massive capital expenditure for the partnership between OpenAI and Nvidia. Vera Rubin is Nvidia’s next-generation GPU architecture that is scheduled to deploy this year. This hardware platform will anchor the infrastructure OpenAI plans to build with this capital.
Additionally, OpenAI has engaged in fundraising discussions with other investors as well. The total round could close at around $100 billion. Amazon, Microsoft, and SoftBank are so far considered key participants in the broader fundraising round. Reportedly, Amazon and Softbank are considered to provide a significant commitment of $50 billion and $30 billion, respectively, though specific commitment amounts have not been confirmed.
AI Investment Booms with Nvidia
NVIDIA has become a desired supplier of the resources required to train and operate the Large Language Models (LLMs), which are advanced AI systems that are trained on massive databases like the GPT series, powered by ChatGPT. This is the primary type of product where OpenAI requires Nvidia’s massive compute power.
Despite the concerns and volatility in the market, the massive AI bull accelerated by the outburst of investment in giant data centres continues the immense purchase of energy-intensive chips.
