NVIDIA Announces $30 Billion Investment in OpenAI to Deepen AI Partnership

A $30 billion agreement between Nvidia and OpenAI, founded by Sam Altman, is almost finalised. The businesses took this action in lieu of the $100 billion long-term commitment they signed last year. The deal was a component of the AI company's substantial new funding round. The multi-year investment plan that Nvidia and OpenAI, headed by Jensen Huang, announced in September of last year will not be moving forward. This weekend could see the finalisation of the contract between OpenAI and Nvidia, which would be a part of the artificial intelligence start-up's latest fundraising round. According to the reports, Nvidia is currently in the final stages of discussions.

Why OpenAI and NVIDIA Took the U-Turn?

This about-face from the pact, which generated a lot of excitement when it was announced in September 2025, has investors on edge. Their worries about the future of AI are what led to a 17% decline in US tech stocks since the start of the year. Despite being touted as a "letter of intent" last year, the deal between Nvidia and OpenAI was never consummated.

A few weeks later, the business led by Jensen Huang surpassed the $5 trillion market value threshold. Hence, marking a significant achievement in the artificial intelligence field and bringing together the pioneering enterprises at the core of the AI boom. Neither OpenAI nor Nvidia have made any formal announcements about the new agreement or its dissolution. Yet, the $100 billion agreement was said to be "on ice" by The Wall Street Journal in January. The new agreement is a $30 billion investment from chipmaker Nvidia, in which OpenAI shares will be exchanged for $30 billion. Jensen Huang and Sam Altman have denied rumours that OpenAI and Nvidia are cooling relations.

How OpenAI Planning to Utilise Raised Funds?

ChatGPT, the company behind OpenAI, is aiming to raise $100 billion in its most recent round of fundraising, which would put its valuation at over $830 billion. Much of OpenAI's fresh funding will go toward purchasing Nvidia gear. OpenAI and other LLM developers have poured a lot of their massive funding into Nvidia's products.  U.S. tech behemoth Nvidia's CEO Jensen Huang has pledged a "huge" commitment to OpenAI. Accordingly, he called the rumours that he is dissatisfied with the generative AI celebrity "nonsense."