Nvidia Nears Deal to Invest $20 Billion in OpenAI: Report

Chipmaking giant Nvidia is nearing a deal to invest around $20 billion in OpenAI as part of the ChatGPT maker’s latest funding round, according to a source familiar with the matter cited by Reuters on Tuesday.

OpenAI is reportedly seeking to raise up to $100 billion in this funding round, which would value the company at approximately $830 billion, Reuters had reported last week. If finalised, Nvidia’s participation would rank among the largest strategic investments in artificial intelligence to date.

OpenAI’s Mega Funding Round Draws Tech Heavyweights

Amazon and SoftBank Also in the Race

Major global companies, including Amazon and SoftBank Group Corp, are racing to establish deeper partnerships with OpenAI. These firms are betting that closer ties with the AI startup will provide a significant competitive advantage as the AI arms race accelerates.

The Nvidia-OpenAI investment, however, has not yet been finalised, the source told Reuters, highlighting that discussions are still ongoing.

Bloomberg and WSJ Reports Add Context to Talks

Earlier in the day, Bloomberg News reported that Nvidia was nearing a deal with OpenAI. The report follows earlier coverage by The Wall Street Journal, which said that Nvidia’s September plan to invest $100 billion in OpenAI and supply it with data centre chips had stalled.

According to the WSJ, Nvidia had expressed doubts about the structure of that earlier proposal, delaying what was initially expected to be a quick closing.

Deal Talks Dragged On for Months

The proposed Nvidia-OpenAI deal was expected to close within weeks, but negotiations have stretched over several months, reflecting the complexity and scale of the investment.

Addressing speculation around the talks, Nvidia CEO Jensen Huang publicly denied reports of dissatisfaction with OpenAI. Speaking on Saturday, Huang said the company plans to make a "huge" investment in OpenAI, probably its largest ever.

Huang Signals Long-Term Commitment to OpenAI

Huang also told CNBC earlier on Tuesday that Nvidia would consider investing in OpenAI’s next fundraising round as well as in the company’s eventual initial public offering (IPO).

These comments suggest Nvidia sees OpenAI as a long-term strategic partner rather than a one-off investment opportunity.

Chip Concerns Add Complexity to Relationship

Reuters reported on Monday that OpenAI has been unsatisfied with some of Nvidia’s latest AI chips and has been exploring alternative suppliers since last year. This development could potentially complicate the partnership, given Nvidia’s dominant position in the AI hardware market.

Responding to the report, OpenAI Chief Executive Sam Altman sought to downplay concerns, stating that Nvidia makes "the best AI chips in the world" and that OpenAI hopes to remain a "gigantic customer for a very long time".

Why This Deal Matters for the AI Industry

A successful $20 billion investment would:

• Strengthen Nvidia’s influence across the AI software and hardware stack

• Deepen OpenAI’s access to advanced computing infrastructure

• Signal unprecedented confidence in AI’s long-term economic potential

• Set new benchmarks for startup valuations and funding scale

With AI increasingly shaping cloud computing, enterprise software, and consumer applications, the Nvidia-OpenAI relationship is emerging as one of the most critical partnerships in the global technology ecosystem.