Nvidia in Talks to Invest Up to $30 Billion in OpenAI in Landmark AI Bet
by Suraj Malik - 18 hours ago - 7 min read
Nvidia is reportedly negotiating one of the biggest investments in artificial intelligence history, with plans to put up to $30 billion into OpenAI as part of a massive new funding round. If completed, the deal would not only deepen the already tight relationship between the two companies but also reshape the economics of the AI infrastructure race.
The talks, first reported by CNBC, are advanced but not yet finalized. Both Nvidia and OpenAI have declined public comment, and the structure could still change.
Still, the scale alone signals how aggressively the AI ecosystem is consolidating around a handful of dominant players.
A Mega Round Taking Shape
At the center of the discussions is Nvidia potentially taking a massive equity stake in OpenAI. Sources indicate the broader funding round could total around $100 billion, making it one of the largest capital raises ever attempted by a private technology company.
Alongside Nvidia, other strategic investors are expected to include Microsoft, Amazon, and SoftBank. The structure suggests OpenAI is assembling a coalition of both infrastructure partners and deep-pocketed financial backers to fuel its next growth phase.
If the round closes near reported terms, OpenAI’s valuation could land somewhere between $730 billion and $830 billion. That would push the company into the upper tier of global tech giants despite remaining privately held.
For context, very few companies in history have approached that valuation range without going public.
From a $100B Infrastructure Vision to a Direct Equity Bet
The potential investment also marks a meaningful shift from the companies’ earlier collaboration model.
Back in 2025, Nvidia and OpenAI signed a non-binding memorandum that outlined a far more infrastructure-heavy vision. That plan contemplated up to $100 billion tied to building roughly 10 gigawatts of Nvidia-powered AI supercomputing capacity dedicated to OpenAI workloads.
At the time, the agreement was framed as part of the coming global AI compute build-out. However, the initiative has since been described as effectively on hold. Nvidia itself previously cautioned there was no assurance the project would ultimately materialize.
The new proposal is structurally different. Instead of tying capital to specific deployment milestones, the current talks focus on a straightforward equity investment.
This shift gives both companies more flexibility. OpenAI gains capital it can deploy across multiple priorities, while Nvidia gains direct exposure to OpenAI’s long-term upside without being locked into a single infrastructure pathway.
Why Nvidia Wants a Bigger Stake
Strategically, the logic behind Nvidia’s interest is relatively clear.
OpenAI is already one of Nvidia’s most important customers. Nearly all of OpenAI’s large-scale training and inference workloads run on Nvidia GPUs, and a significant portion of any new funding OpenAI raises is widely expected to flow back into compute infrastructure.
By taking an equity position, Nvidia moves beyond its traditional role as a hardware supplier. Instead of only capturing chip margins, it gains participation in the broader value creation of the AI stack.
This also strengthens customer lock-in. With Nvidia both supplying the compute backbone and holding ownership in the leading model developer, the relationship becomes structurally deeper.
Nvidia CEO Jensen Huang has repeatedly indicated the company intends to remain closely involved in OpenAI’s growth. He has publicly stated Nvidia would participate in the next major funding round and has downplayed any speculation of tension between the firms.
OpenAI’s Funding Strategy: Two-Phase Structure
According to reports, the broader OpenAI capital raise is expected to unfold in two stages.
The first phase would bring in strategic partners such as Microsoft, Amazon, and Nvidia. These investors are not just financial backers; they are deeply embedded in the AI infrastructure ecosystem through cloud, chips, and platform services.
The second phase would open the round to a wider pool of financial investors.
OpenAI CEO Sam Altman has framed the fundraising effort as part of what he calls the largest infrastructure build-out in history. The reference points to the enormous capital requirements associated with global AI data centers, training clusters, and inference networks.
Training frontier AI models and serving them at scale is no longer a purely software problem. It is an industrial-scale infrastructure challenge.
What This Means for the AI Power Structure
If the deal closes anywhere near the rumored size, it would have several important implications for the broader AI landscape.
First, it would further cement OpenAI’s position as the most richly valued AI startup globally. The company would sit in valuation territory typically reserved for the largest public technology firms.
Second, it would deepen Nvidia’s role not just as the dominant AI chip supplier but as a direct financial stakeholder in the leading model ecosystem.
Third, it would reinforce the emerging pattern of vertical alignment across the AI stack. Instead of loosely connected vendors, the industry is increasingly seeing tightly coupled relationships between model developers, cloud providers, and chip manufacturers.
This kind of ecosystem consolidation could make it harder for smaller players to compete at the frontier level, where capital intensity continues to rise.
Why the Earlier 10-Gigawatt Vision Stalled
The cooling of the earlier $100 billion infrastructure concept reflects broader uncertainty in the AI build-out cycle.
While demand for AI compute remains extremely strong, the pace and structure of hyperscale expansion are still evolving. Power availability, data center construction timelines, and capital discipline have all become more closely scrutinized by investors.
By pivoting toward an equity-first relationship, Nvidia and OpenAI may be choosing a more flexible path that allows infrastructure plans to evolve without locking both parties into rigid deployment commitments.
It also spreads risk. Equity participation gives Nvidia upside exposure even if specific data center timelines shift.
The Competitive Backdrop
The talks are unfolding at a moment when competition across the AI stack is intensifying rapidly.
Hyperscalers are investing tens of billions into AI infrastructure. Sovereign AI initiatives are emerging globally. And new model entrants, particularly from China, are beginning to challenge assumptions about cost and performance leadership.
Against that backdrop, locking in strategic alliances has become increasingly important.
For Nvidia, maintaining OpenAI as a flagship customer is critical to sustaining GPU demand at the very high end of the market. For OpenAI, securing long-term access to cutting-edge compute remains essential to staying competitive in frontier model development.
The proposed investment strengthens both sides of that equation.
Still Not a Done Deal
Despite the advanced stage of discussions, the agreement has not been signed. Multiple reports emphasize that terms remain subject to change and the transaction could still be modified or even fall apart.
Large private funding rounds of this scale often involve complex negotiations around governance, ownership structure, and long-term commercial alignment.
Until formal documentation is completed, the headline numbers should be treated as indicative rather than final.
What to Watch Next
Several signals will indicate whether the deal is moving toward completion.
Investors will be watching for:
- Confirmation of round size and final valuation
- Details on Nvidia’s exact equity percentage
- Participation levels from Microsoft, Amazon, and SoftBank
- OpenAI’s updated infrastructure roadmap
- Any changes to Nvidia’s long-term supply commitments
Each of these elements will shape how tightly the AI ecosystem becomes vertically integrated over the next few years.
Bottom Line
Nvidia’s reported plan to invest up to $30 billion in OpenAI marks a potential turning point in the AI industry’s capital structure. The move would transform Nvidia from OpenAI’s most important hardware supplier into one of its largest financial stakeholders.
If completed, the deal would underscore a broader reality: the future of AI is being shaped not just by model breakthroughs, but by massive, strategically aligned capital flowing into the companies building the next generation of intelligence infrastructure.