Nvidia is close to investing $20 billion in OpenAI, a move that could become the largest investment the company has ever made. This comes as OpenAI looks to raise up to $100 billion in a new funding round.
The key points
- Nvidia’s potential investment is around $20 billion
- OpenAI’s total fundraise target is up to $100 billion
- Other big names in talks include Amazon and SoftBank
- The deal is not final and terms could still change
Why this matters
Nvidia and OpenAI sit at the centre of the AI boom. OpenAI builds leading AI models, while Nvidia supplies the chips that power them. This investment would deepen an already critical relationship.
Some bumps along the way
Recent reports pointed to internal doubts at Nvidia about the size of the investment. That raised concerns around valuation and risk. Still, Nvidia CEO Jensen Huang has said the company will participate, calling OpenAI a very good investment.
The bigger picture
AI is becoming more capital intensive, and the largest players are locking in partnerships early. Whether this turns into a long term advantage or an expensive gamble will shape the next phase of the AI race.
This is less about one deal and more about how power in the AI ecosystem is forming right now.