Nvidia is in talks to invest up to $30 billion in OpenAI, source says

Nvidia CNBC has confirmed that it is in talks to invest up to $30 billion in OpenAI as part of a funding round that could value the AI ​​startup at a preliminary valuation of $730 billion.

The investment is separate from the $100 billion infrastructure deal OpenAI and Nvidia announced in September, according to a source familiar with the matter who asked not to be named because the discussions are private. The $30 billion is not tied to any distribution phase, the person said.

The September announcement, which shook up the tech sector and sparked subsequent infrastructure deals, outlined a structure under which Nvidia would invest in OpenAI over several years while bringing new supercomputing facilities online. A source told CNBC at the time that Nvidia’s initial investment of $10 billion would be deployed once its first gigawatt is completed.

Nvidia’s $30 billion investment in OpenAI is different than what was considered in September, but the company may still decide to invest in subsequent rounds that fit within that framework, the person said.

The person said the $30 deal is not final and details could still change. Finance Times It was the first company to announce the potential investment.

Nvidia declined to comment.

Questions about the status of OpenAI and Nvidia’s $100 billion infrastructure deal have been raised in recent months, especially Wall Street Magazine In January, it was reported that the deal was “on ice.”

Nvidia previously said in its quarterly financial report in November that “there is no assurance that we will enter into definitive agreements regarding the OpenAI opportunity or other potential investments.”

OpenAI CEO Sam Altman wrote that he tried to play down concerns about the deal: In a post on

Nvidia CEO Jensen Huang also addressed the potential dispute in an interview with CNBC’s Jim Cramer earlier this month, saying there was “no doubt” the company would invest in OpenAI’s next round of funding.

OpenAI is also in fundraising talks with other investors, and the total round could be closer to $100 billion, as CNBC previously reported. Negotiations have accelerated in recent weeks but have not yet been concluded.

As CNBC previously reported, the startup’s funding round may be completed in two parts, starting with investments from strategic companies such as Amazon, Microsoft and Nvidia. Other contributions from a broader pool of investors will follow.

WRISTWATCH: Watch CNBC’s full interview with OpenAI CEO Sam Altman