Nvidia is nearing a deal to invest roughly $20 billion in OpenAI as part of the artificial intelligence firm’s latest funding round, according to Reuters. ChatGPT maker OpenAI is seeking to raise up to $100 billion in the round, valuing the company at about $830 billion, Reuters reported last week.
Competitive partnerships and stalled talks
Companies including Amazon and SoftBank Group Corp are racing to forge partnerships with OpenAI, betting that closer ties with the artificial-intelligence startup would give them a competitive edge in the intensifying AI race. Bloomberg News reported earlier on Tuesday that Nvidia was nearing a deal with OpenAI. The development follows a Wall Street Journal report that Nvidia’s September plan to invest $100 billion in OpenAI and supply it with data centre chips had stalled after the chipmaker expressed doubts about the arrangement. That deal had been expected to close within weeks, but negotiations dragged on for months.
Executive comments and future plans
Nvidia Chief Executive Jensen Huang has denied claims that he was unhappy with the ChatGPT maker and said on Saturday that the company plans to make a “huge” investment in OpenAI, likely its largest ever. Huang also told CNBC earlier on Tuesday that Nvidia would consider investing in OpenAI’s next fundraising round as well as the startup’s eventual initial public offering.
Reuters reported on Monday that OpenAI has been dissatisfied with some of Nvidia’s latest AI chips and has explored alternative suppliers since last year, potentially complicating the relationship between the two companies. Following that report, OpenAI Chief Executive Sam Altman said Nvidia makes “the best AI chips in the world” and added that the company hopes to remain a “gigantic customer for a very long time”
