Nvidia, the world\u2019s most valuable company, is reportedly planning to invest $30bn (\u00a322bn) in OpenAI\u2019s next funding round, after a $100bn deal between the two dissolved earlier this month.<\/p>\n
The maker of ChatGPT is expected to be valued at $730bn in the funding round, almost twice the valuation<\/a> of Anthropic, one of its main rivals, which raised $30bn earlier this month.<\/p>\n Nvidia\u2019s announcement of a $100bn investment in OpenAI last September drove the chipmaker\u2019s stock to more than $5tn and led to fervent discussion about circular deals<\/a> between the largest players in artificial intelligence.<\/p>\n The investment, which the chipmaker framed<\/a> as a \u201cletter of intent\u201d, would have involved Nvidia giving OpenAI money to buy and deploy its chips for its AI infrastructure.<\/p>\n That all appeared to change earlier this month, when reports<\/a> surfaced that Nvidia\u2019s intent was never a firm commitment \u2013 and OpenAI was looking elsewhere for chips to power its systems. The news shook markets, which were already<\/a> febrile<\/a> over concerns that AI agents would replace jobs and decimate the market for global software companies.<\/p>\n In the new arrangement, Nvidia<\/a> will invest in OpenAI in return for its stock, with no commensurate commitment for OpenAI to buy its chips.<\/p>\n OpenAI\u2019s next funding round will reportedly raise about $100bn and involve investments<\/a> from Amazon, SoftBank and Microsoft, the Financial Times reported. The expected $730bn valuation would put the maker of ChatGPT just behind SpaceX as one of the world\u2019s most valuable privately held companies.<\/p>\n However, questions remain over its ability to turn a sustainable profit out of its sky-high investment, especially given that it is burning through cash while losing market share to competitors. ChatGPT\u2019s market share has declined from 86.7% to 64.5% in the past year, and it is now trailing<\/a> Anthropic in the market for enterprise software.<\/p>\n OpenAI has started to test ads<\/a> targeted to users of ChatGPT, but it is unclear if this is a clear path to profit \u2013 and resulted in Anthropic, its rival, attacking<\/a> the practice in a series of high-profile advertisements earlier this month.<\/p>\n SoftBank, one of OpenAI\u2019s main backers, said on an earnings call last week that \u201cnothing has been decided\u201d on the subject of its anticipated forthcoming investment in OpenAI, although it made billions<\/a> of dollars last year on its current holdings in the company.<\/p>\n Meanwhile, OpenAI appears to be diversifying beyond Nvidia\u2019s graphics processing units, announcing deals with rival chipmakers including<\/a> AMD and Broadcom<\/a>.<\/p>\n