Nvidia in Talks to Invest $30 Billion in OpenAI at $730 Billion Valuation

When Nvidia and OpenAI announced a $100 billion infrastructure partnership last September, the tech industry took notice. Five months later, that seismic deal appears to be evolving into something different—and potentially even more consequential. According to multiple sources familiar with the negotiations, Nvidia is now in advanced discussions to invest up to $30 billion directly in OpenAI, a move that would value the ChatGPT maker at $730 billion before the investment.

“We love working with Nvidia and deeply appreciate our partnership. I don’t get where all this insanity is coming from.” — Sam Altman, OpenAI CEO

A Deal in Flux

The proposed $30 billion investment represents a significant pivot from the companies’ September announcement. That earlier agreement outlined a multi-year framework where Nvidia would invest as OpenAI brought new supercomputing facilities online, with an initial $10 billion deployment tied to the completion of Nvidia’s first gigawatt facility.

The new structure is fundamentally different. The $30 billion under discussion is not tied to any deployment milestones or infrastructure commitments, according to sources familiar with the matter. It’s a straightforward equity investment—albeit one of historic proportions.

Deal status remains fluid. Sources caution that the terms are still subject to change and the agreement is not yet final. The Financial Times first reported the potential investment, and CNBC has independently confirmed the discussions. Nvidia declined to comment on the record.

“There’s no question we will invest in OpenAI’s next funding round.” — Jensen Huang, Nvidia CEO

The Valuation Question

A $730 billion pre-money valuation would make OpenAI one of the most valuable private companies in history. For context, that’s roughly equivalent to the market capitalization of Mastercard or Cisco—and more than double OpenAI’s valuation from its 2023 funding round.

Strategic investors are lining up. The total funding round could reach approximately $100 billion, with Amazon and Microsoft also expected to participate alongside Nvidia. The round may close in two parts: first, investments from strategic partners with deep existing ties to OpenAI, followed by contributions from a broader pool of financial investors.

The customer-becomes-investor dynamic creates fascinating strategic implications. OpenAI is already one of Nvidia’s largest customers, having committed billions to secure access to the company’s cutting-edge AI chips. Now Nvidia would own a piece of the company whose success drives so much of its own revenue growth.

Reading the Tea Leaves

Questions about the September infrastructure deal have swirled for months. The Wall Street Journal reported in January that the $100 billion agreement was “on ice,” sparking speculation about a potential rift between the companies. Both CEOs have since attempted to downplay those concerns.

Nvidia acknowledged the uncertainty in its November quarterly filing, stating there was “no assurance that we will enter into definitive agreements with respect to the OpenAI opportunity or other potential investments.” The language was standard SEC caution, but in hindsight, it may have signaled the negotiations were evolving.

The accelerated timeline for this funding round suggests both companies see strategic value in deepening their ties—regardless of what happens to the original infrastructure framework.

What Comes Next

The implications extend far beyond these two companies. A $730 billion valuation would set a new benchmark for AI startups and likely trigger a wave of follow-on investments across the sector. It would also intensify scrutiny of OpenAI’s path to profitability and its ability to justify such a massive price tag.

For Nvidia, the investment represents both a strategic hedge and a vote of confidence. The company dominates the AI chip market today, but faces growing competition from AMD, custom silicon from Google and Amazon, and a new generation of Chinese challengers. Owning a stake in OpenAI—the company most synonymous with the consumer AI revolution—provides exposure to the application layer regardless of how the hardware market evolves.

The deal, if finalized, would mark one of the largest single investments in a private company in history. It would also cement the symbiotic relationship between the company building the AI infrastructure and the company defining how that infrastructure gets used.

Negotiations are reportedly accelerating, with both sides working to finalize terms in the coming weeks. The AI industry is watching closely—because whatever these two companies decide will ripple through the entire technology ecosystem.

This article was reported by the ArtificialDaily editorial team. For more information, visit CNBC and Financial Times.