Nvidia, Microsoft, and Amazon are currently in discussions to invest as much as $60 billion in OpenAI, marking one of the most significant capital commitments in artificial intelligence history. The potential funding round could ultimately reach $100 billion when factoring in contributions from additional investors like SoftBank, potentially valuing the ChatGPT creator at approximately $730 billion before the investment.
The complex negotiations, first reported in late January, highlight the intense competition among tech giants to secure strategic positions in the rapidly evolving AI landscape. The discussions come amid reports of friction that were quickly refuted by Nvidia’s CEO, who confirmed the chipmaker remains committed to what could become its largest investment ever.
Nvidia Confirms Plans for Major Investment
Nvidia, already a significant OpenAI backer and the primary supplier of AI chips powering its models, is negotiating to contribute up to $30 billion to the round. This potential investment would substantially deepen the company’s financial and strategic ties with one of the world’s most influential AI developers.
However, the discussions have not been without turbulence. The Wall Street Journal reported that Nvidia’s plan to invest up to $100 billion in OpenAI had stalled, citing sources who claimed that Jensen Huang had privately expressed concerns about what he characterized as a lack of strategic discipline in OpenAI’s operations. The report also suggested he had raised concerns about competition from players like Anthropic and Google.
On Saturday, January 31, Huang forcefully dismissed these reports as “nonsense” during a visit to Taipei. He confirmed that Nvidia will “definitely participate” in OpenAI’s current funding round because it represents “such a good investment.” Huang emphasized his strong relationship with OpenAI leadership, stating, “I believe in OpenAI, the work that they do is incredible. I really love working with Sam.”
Regarding the previously announced $100 billion figure, Huang clarified that it was “never a commitment.” He explained that OpenAI had invited Nvidia to invest up to $100 billion, and the company felt “honored and pleased by the invitation,” but would proceed “one step at a time.” Despite earlier reports of internal skepticism, Huang indicated that Nvidia plans to make a “huge” investment into OpenAI, probably its largest ever.
Microsoft and Amazon Join Talks
Microsoft, OpenAI’s longtime backer and commercial partner, is in discussions to invest less than $10 billion in this round. The Redmond-based tech giant has already poured billions into OpenAI across multiple funding rounds and integrates OpenAI’s models across products such as Azure, Microsoft 365, and Copilot AI tools. Microsoft holds exclusive rights to market OpenAI’s models to cloud clients under their existing partnership.
Amazon represents a particularly significant development in these negotiations, as the e-commerce giant would be entering as a new investor. According to multiple sources, Amazon is negotiating an investment that significantly exceeds $10 billion, with estimates suggesting it could range between $20 billion and $50 billion. Discussions are being led by Amazon CEO Andy Jassy and OpenAI CEO Sam Altman.
The potential Amazon investment would also include expanding an existing agreement under which Amazon provides cloud computing power to the AI startup. Additionally, OpenAI is contemplating a separate arrangement that would enable Amazon to implement OpenAI’s AI models across its various products and services while also granting access for Amazon employees internally.
Potential Funding Structure and Valuation
According to sources familiar with the discussions, OpenAI’s funding round could ultimately reach as much as $100 billion through contributions from multiple strategic partners. In addition to Nvidia, Microsoft, and Amazon, SoftBank is also reportedly in talks to invest up to $30 billion. SoftBank already holds approximately 11 percent of OpenAI following a previous $22.5 billion investment in December.
The round may be executed in two phases, beginning with investments from strategic partners like Amazon, Microsoft, and Nvidia, followed by additional funding from participants such as SoftBank. The new funding round could value OpenAI at approximately $730 billion before the investment, with some estimates suggesting valuations as high as $830 billion depending on final terms.
Should the round close successfully, it would represent one of the largest private financings in history and would help OpenAI address the massive computational demands required for training and operating its next-generation AI models. OpenAI currently has more than $20 billion in annualized revenue and 1.9 gigawatts of compute capacity, supporting its ambitious expansion plans.
The company is nearing the point of receiving term sheets, which would indicate a commitment to invest from the participating companies. However, sources caution that the round remains far from finalized and details could still change as negotiations continue.
