Nvidia is about to invest US$30 billion in OpenAI, scaling back a plan to invest US$100 billion into the ChatGPT maker, the Financial Times reported on Thursday.
The artificial intelligence (AI)-chip powerhouse would be part of OpenAI’s new funding round with an agreement that could be concluded as early as this weekend, said the Times, which cited unnamed sources close to the matter.
Nvidia declined to comment on the report.
Photo: Bloomberg
Nvidia CEO Jensen Huang has said that the US tech giant would make a “huge” investment in OpenAI and said reports that he is unhappy with the generative AI company are “nonsense.”
Huang made the remarks late last month after the Wall Street Journal reported that Nvidia’s plan to invest up to US$100 billion in OpenAI had been put on ice.
Nvidia had announced the plan in September last year, with the investment helping OpenAI build more infrastructure for next-generation AI.
The funding round is reported to value OpenAI at about US$850 billion.
Huang told journalists that the notion of Nvidia having doubts about a huge investment in OpenAI was “complete nonsense.”
Nvidia is going ahead with its investment in OpenAI, Huang said, describing it as “one of the most consequential companies of our time.”
“Sam [Altman] is closing the round, and we will absolutely be involved in the round,” Huang said, referring to OpenAI chief executive. “We will invest a great deal of money.”
Nvidia has become a coveted supplier of processors needed for training and operating the large language models behind chatbots such as OpenAI’s ChatGPT or Google Gemini.
Developers such as OpenAI are directing much of the mammoth investment they have received into Nvidia’s products, rushing to build GPU-powered data centers to serve an anticipated flood of demand for AI services.
The AI rush and its frenzy of investment in giant data centers and the massive purchase of energy-intensive chips continues despite concerns in the markets.
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