Nvidia and OpenAI Near $30 Billion Investment Deal, Replace $100 Billion Pact

In a significant development in the global artificial intelligence race, Nvidia and OpenAI are reportedly close to finalising a new $30 billion investment deal, according to a Financial Times report.

The new structure replaces the previously announced $100 billion multiyear agreement unveiled in September last year, marking a major recalibration in one of the AI industry’s most closely watched partnerships.

What Changes Under the New $30 Billion Deal?

Under the earlier $100 billion arrangement, Nvidia was expected to receive a sizeable ownership stake in OpenAI in exchange for ten $10 billion investments spread across several years, aligned with OpenAI’s growing demand for advanced processing power.

As part of that plan, OpenAI intended to purchase millions of Nvidia AI processors to support its ambitious goal of deploying up to 10 gigawatts of additional computing capacity.

Now, the revised structure centres around a $30 billion equity investment as part of a broader capital transaction that could total around $100 billion. Excluding fresh funding, this would value the ChatGPT creator at approximately $730 billion.

OpenAI’s $730 Billion Valuation and Hardware Reinvestment

A significant portion of OpenAI’s new funding is expected to be reinvested directly into Nvidia hardware. This reflects the continued reliance of large language models and AI infrastructure on Nvidia’s high-performance GPUs and AI accelerators.

While the companies are reportedly moving ahead with parts of the broader $100 billion multiyear investment framework announced last September, the structure and pace appear to be evolving amid shifting market conditions.

Market Pressures and Investor Concerns

The restructuring comes at a time of heightened scrutiny in the AI sector. Investor concerns over sustainability and valuations have contributed to a 17% decline in US tech stocks since the beginning of the year.

As AI infrastructure demands scale into gigawatt-level data centre expansions, questions around capital intensity, energy consumption, and long-term profitability have become central to investment discussions.

Addressing Rumours of Tension

Amid speculation of friction between OpenAI CEO Sam Altman and Nvidia CEO Jensen Huang, both leaders have publicly downplayed reports of discord.

"Nvidia produces the best AI chips in the world, and we love working with them." Earlier this month, Altman stated on X, "We hope to be a huge customer for a very long time."

The comments reinforce the strategic interdependence between OpenAI’s AI model ambitions and Nvidia’s dominance in AI chip manufacturing.

Why This Deal Matters for the AI Industry

Gigawatt-Scale AI Infrastructure

OpenAI is expected to use the fresh investment to build gigawatts of new processing capacity, signalling continued aggressive expansion in AI compute infrastructure.

Reinforcing Nvidia’s AI Chip Leadership

By reinvesting heavily in Nvidia hardware, OpenAI strengthens Nvidia’s position as the primary supplier of AI accelerators powering large-scale generative AI systems.

Future Agreements Likely

Sources suggest the current $30 billion deal may not be the final chapter. As OpenAI’s computing needs expand, additional agreements between the two companies could follow.

The Bigger Picture

The Nvidia-OpenAI partnership remains central to the global AI ecosystem. As generative AI adoption accelerates across industries — from enterprise automation to consumer applications — the demand for high-performance compute infrastructure continues to surge.

With a potential $730 billion valuation and billions earmarked for chip purchases, OpenAI’s growth trajectory underscores both the promise and capital intensity of the AI revolution.