Nvidia CEO Jensen Huang confirmed the chipmaker plans to invest in OpenAI’s upcoming fundraising round and would consider participating in the artificial intelligence startup’s eventual initial public offering. The announcement comes as OpenAI pursues what Huang described as the largest private funding round ever raised in history.
Speaking to CNBC on Tuesday, Huang dismissed recent reports suggesting tension between the two companies over a stalled investment deal. He stated there is no controversy and called such claims complete nonsense, emphasizing that Nvidia loves working with OpenAI. The CEO clarified that everything remains on track with no drama involved.
OpenAI’s Massive Fundraising Efforts
OpenAI is reportedly seeking to raise up to 100 billion dollars in its latest funding round, which would value the company at approximately 830 billion dollars. Nvidia is nearing a deal to invest 20 billion dollars in this funding round, according to Bloomberg News, citing people familiar with the matter. While Nvidia’s contribution is nearly complete, the deal is not yet final and terms could still change.
This represents what Huang called a huge investment for Nvidia, likely the company’s largest ever. The chipmaker had initially announced plans last September to invest up to 100 billion dollars in OpenAI and supply the startup with data center chips.
Competing for AI Partnerships
Major technology companies and investors are racing to forge partnerships with OpenAI, betting that closer ties with the artificial intelligence startup would provide them a competitive edge in the AI race. Amazon and SoftBank Group Corp are among the big players pursuing relationships with the ChatGPT creator.
The Wall Street Journal recently reported that Nvidia’s September investment plan had stalled after the chipmaker expressed doubts about the deal. However, Huang directly addressed these concerns during his CNBC interview, reaffirming that the company will invest in the next round.
Complexity in the Nvidia-OpenAI Relationship
Despite Huang’s reassurances, the relationship between the two companies faces some complications. Reuters reported on Monday that OpenAI has been unsatisfied with some of Nvidia’s latest artificial intelligence chips and has sought alternatives since last year. This development potentially complicates the relationship between two of the highest-profile players in the AI boom.
On Saturday, Huang had already publicly denied being unhappy with OpenAI, stating his intention to make a substantial investment in the company. His Tuesday comments to CNBC’s Jim Cramer further reinforced Nvidia’s commitment to participating in OpenAI’s fundraising efforts.
The timing of these statements appears aimed at quelling speculation about friction between the chipmaker and the AI startup. Both companies have not provided additional public comments beyond Huang’s CNBC interview. The full interview was scheduled to air on CNBC’s Mad Money program later Tuesday.
As the artificial intelligence sector continues its rapid expansion, the partnership between Nvidia and OpenAI remains crucial for both companies. Nvidia’s advanced chips power much of the AI infrastructure supporting OpenAI’s products, while OpenAI’s success has driven significant demand for Nvidia’s hardware. The outcome of this latest funding round will likely shape the competitive landscape of the AI industry for years to come.
