Nvidia is close to finalising a deal worth $30 billion with Sam Altman’s OpenAI in a move to replace the $100 billion long-term commitment that the companies had signed last year as part of a big new funding round for the AI company, Financial Times reported.
Nvidia, led by Jensen Huang, and OpenAI will no more proceed with the multi-year investment plan that they had announced in September last year, according to FT citing people with knowledge of the matter.
Here are key things you need to know about the new Nvidia-OpenAI deal.
What to know about OpenAI Nvidia deal
The deal between OpenAI and Nvidia, which would be part of a new funding round for the artificial intelligence start-up, could be finalised as early as this weekend, according to the FT report.
Nvidia, the world’s most valuable company, is in the final stages of negotiations, the report added citing the people in the know.
The $30 billion equity investment by Nvidia will form part of a larger funding round that is on track to raise $100 billion to increase the ChatGPT maker’s value to $730 billion, not including the new money, the report added.
ChatGPT maker OpenAI is looking to raise up to $100 billion in its latest funding round, valuing it at about $830 billion, Reuters had reported in January.
The FT report further stated that OpenAI will reinvest a large chunk of its new capital into hardware from Nvidia. However, the companies will not proceed with the earlier $100 billion agreement announced last year.
LLM developers like OpenAI are directing much of the mammoth investment they have received into Nvidia’s products.
The U-turn from the agreement, which was announced in September 2025 amid much buzz, comes amid jitters among investors about the health of the AI industry that has triggered a 17% downturn in US tech stocks since the beginning of this year.
Last year’s Nvidia-OpenAI deal was announced as a “letter of intent” but was never closed. It marked a milestone in the AI sector, closely tying together the pioneer companies at the heart of the AI boom and drove the Jensen Huang-led company above the $5 trillion market value mark a few weeks later.
OpenAI and Nvidia have not released any official statement regarding the new deal or the falling out of the old one.
However, The Wall Street Journal in January had reported that the $100 billion deal was “on ice”.
The deal has now been replaced with the $30 billion Nvidia investment, where the chipmaker will invest $30 billion in exchange of OpenAI stock.
Sam Altman and Jensen Huang have tried to dismiss reports of cooling relations between OpenAI and Nvidia.
“We love working with Nvidia and they make the best AI chips in the world. We hope to be a gigantic customer for a very long time,” Altman posted on X earlier this month.
Nvidia CEO Jensen Huang has insisted that the US tech giant will make a “huge” investment in OpenAI and dismissed as “nonsense” reports that he is unhappy with the generative AI star.
Key Takeaways
- Nvidia’s investment reflects a strategic shift amidst market uncertainty.
- OpenAI’s funding ambitions remain high, targeting $100 billion in total.
- The partnership between Nvidia and OpenAI continues despite the change in deal structure.
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