Nvidia is close to finalising a deal worth $30 billion with Sam Altman’s OpenAI in a move to replace the $100 billion long-term commitment that the companies had signed last year as part of a big new funding round for the AI company, Financial Times reported.<\/p>\n
Nvidia, led by Jensen Huang<\/a>, and OpenAI will no more proceed with the multi-year investment plan that they had announced in September last year, according to FT citing people with knowledge of the matter.<\/p>\n Here are key things you need to know about the new Nvidia-OpenAI deal.<\/p>\n What to know about OpenAI Nvidia deal<\/p>\n The deal between OpenAI <\/a>and Nvidia, which would be part of a new funding round for the artificial intelligence start-up, could be finalised as early as this weekend, according to the FT report.<\/p>\n Nvidia, the world’s most valuable company, is in the final stages of negotiations, the report added citing the people in the know.<\/p>\n The $30 billion equity investment by Nvidia will form part of a larger funding round that is on track to raise $100 billion to increase the ChatGPT maker’s value to $730 billion, not including the new money, the report added.<\/p>\n ChatGPT maker OpenAI is looking to raise up to $100 billion in its latest funding round, valuing it at about $830 billion, Reuters had reported in January.<\/p>\n The FT report further stated that OpenAI will reinvest a large chunk of its new capital into hardware from Nvidia. However, the companies will not proceed with the earlier $100 billion agreement announced last year.<\/p>\n LLM developers like OpenAI are directing much of the mammoth investment they have received into Nvidia’s products.<\/p>\n Also Read | Nvidia + OpenAI Bet: The AI Investment Surge You\u2019re Watching<\/a>Also Read | Meta and Nvidia strike multiyear deal to deploy \u2018millions\u2019 of AI chips<\/a>Also Read | Eternal partners with OpenAI to boost AI integration \u2014 Details here<\/a><\/p>\n The U-turn from the agreement, which was announced in September 2025 amid much buzz, comes amid jitters among investors about the health of the AI industry that has triggered a 17% downturn in US tech stocks since the beginning of this year.<\/p>\n