Nvidia CEO signals investment in OpenAI round may be largest yet

Source: Fortune

Summary

Nvidia CEO Jensen Huang announced that the company will participate in OpenAI’s latest funding round, describing it as a “huge” investment. Huang didn’t disclose the exact amount but said it would be one of the largest investments Nvidia has ever made. This comes after a report that Nvidia’s previously announced $100 billion investment plan had stalled due to internal doubts and concerns about OpenAI’s business approach. Nvidia’s investment is part of OpenAI’s efforts to raise up to $100 billion in its current funding round, which may value the company at $750 billion to $830 billion.

Our Reading

The numbers tell one story.

Nvidia invests heavily in OpenAI, a key buyer of its AI chips, despite concerns about the circular nature of AI deals. Jensen Huang calls the investment “huge” but denies reports of a stalled $100 billion deal. OpenAI seeks to raise up to $100 billion, with Amazon, Microsoft, and others in talks to participate. Nvidia’s investment is part of a larger effort to support OpenAI’s data center expansion.

Nvidia is doubling down on a deal that’s already raised eyebrows.

Author: Evan Null