NVIDIA nearing $20B investment in OpenAI
What's the story
NVIDIA is close to finalizing a $20 billion investment in OpenAI, according to Reuters. The deal, which would be the chipmaker's biggest single investment in the ChatGPT developer, is part of OpenAI's latest funding round. The company is looking to raise up to $100 billion. Amazon and SoftBank Group are among the tech giants vying for partnerships with OpenAI.
Investment delay
NVIDIA's $100B OpenAI investment stalled last month
The Wall Street Journal recently reported that NVIDIA's September plan to invest $100 billion in OpenAI had stalled. This was after some within the chip giant expressed doubts about the deal. However, both companies' CEOs have publicly reiterated their commitment to collaboration.
Future plans
NVIDIA open to investing in OpenAI's next fundraising round
NVIDIA CEO Jensen Huang has denied any discontent with OpenAI and confirmed the company's intention to make a "huge" investment in the AI start-up. He said it would probably be their largest ever. Huang also told CNBC on Tuesday that NVIDIA would consider investing in OpenAI's next fundraising round and its eventual initial public offering (IPO).
Chip concerns
OpenAI looking for alternatives to NVIDIA's AI chips
Reuters reported on Monday that OpenAI is dissatisfied with some of NVIDIA's latest AI chips and has been looking for alternatives since last year. This could complicate their relationship further. However, OpenAI CEO Sam Altman said after the report that NVIDIA makes "the best AI chips in the world" and hopes to remain a "gigantic customer for a very long time."