Key Points:
- Nvidia is nearing a deal to invest $20 billion into OpenAI’s latest funding round.
- News reported the contribution is almost complete, though terms may change.
- CEO Jensen Huang confirmed to CNBC that Nvidia plans to join the fundraising and potential IPO.
- Nvidia previously announced plans last September to invest up to $100 billion in the startup.
Nvidia is on the verge of cementing a massive financial partnership with OpenAI. According to a Tuesday report from Bloomberg News, the chipmaker is nearing a deal to invest $20 billion as part of the AI startup’s latest funding round. Sources familiar with the situation stated that Nvidia’s contribution is nearly finished. However, they cautioned that the deal is not yet final. Until the paperwork is signed, the specific terms could still shift.
This report clarifies the situation following a day of mixed messages regarding the relationship between the two tech heavyweights. Earlier on Tuesday, Nvidia CEO Jensen Huang appeared on CNBC to address the company’s future moves. Huang told the network that Nvidia would definitely consider investing in OpenAI’s next fundraising efforts. He went a step further, suggesting the company is also looking at the startup’s eventual initial public offering (IPO).
Huang’s comments provided much-needed clarity. They came right on the heels of other recent reports claiming the investment talks had stalled. By speaking out, the CEO effectively shut down rumors of a breakdown in negotiations. His statement aligns with the Bloomberg report that the money is ready to move, signaling that the partnership remains strong.
The sheer size of the numbers involved highlights the scale of this collaboration. The chipmaker had already set high expectations last September when it announced plans to invest up to $100 billion in the startup. This current $20 billion tranche appears to be the next major step in fulfilling those financial ambitions.
Despite the high-profile reporting and the public comments from Huang, official representatives kept quiet. When Reuters attempted to get a formal confirmation, neither Nvidia nor OpenAI responded immediately to requests for comment. For now, the tech industry waits to see when the two companies will officially seal the deal.
