Nvidia nears deal to invest $25.4 billion in OpenAI funding round
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Nvidia and OpenAI have been linchpins of the AI boom, but their relationship has come under new scrutiny amid reports of tensions between the two.
PHOTO: REUTERS
San Francisco – Nvidia is nearing a deal to invest US$20 billion (S$25.4 billion) in OpenAI as part of its latest funding round, according to people familiar with the matter, potentially marking the chipmaker’s single biggest investment in the ChatGPT developer.
Nvidia’s contribution is close to completion, according to the people. The deal has not been finalised, and the terms could change.
OpenAI and Nvidia declined to comment.
OpenAI is seeking to raise up to US$100 billion in funding for a new round, with much of that coming from large technology companies, Bloomberg News has reported. Amazon.com has had discussions to invest as much as US$50 billion, and SoftBank Group has held talks to invest as much as US$30 billion.
The Financial Times previously reported that Nvidia might invest as much as US$20 billion.
Nvidia and OpenAI have been linchpins of the artificial intelligence boom, but their relationship has come under new scrutiny in recent days amid reports of tensions between the two companies.
The Wall Street Journal reported on Jan 30 that a plan Nvidia announced in September to invest up to US$100 billion in OpenAI overall had stalled after some inside the chip giant expressed doubts about the deal. The chief executives of both companies have since publicly said they remain committed to working together.
“We will definitely participate in the next round of financing because it’s such a good investment,” Nvidia CEO Jensen Huang said on Jan 31, adding it would potentially be “the largest investment we’ve ever made”. BLOOMBERG
