The financial landscape of artificial intelligence is being reshaped once again, as Nvidia reportedly moves to invest $30 billion in OpenAI’s next funding round in exchange for equity. The deal replaces a controversial $100 billion arrangement that collapsed this month, and it positions Nvidia not just as OpenAI’s primary chip supplier, but as a direct financial stakeholder in its success.
The original deal was notable as much for its structure as its size. Nvidia’s commitment was framed around OpenAI using the investment to purchase Nvidia’s chips, prompting critics to label it a “circular” arrangement that served to inflate apparent investment figures without creating genuine value. When reports confirmed that the deal lacked binding commitment and that OpenAI was shopping for alternative suppliers, the arrangement fell apart quickly, unsettling investors already nervous about AI sector dynamics.
With the new deal, all of that complexity is stripped away. Nvidia pays $30 billion, receives OpenAI stock, and OpenAI is free to spend those funds however it chooses. It is a more honest expression of financial confidence, and it meaningfully changes Nvidia’s relationship with the AI industry from supplier to co-investor.
OpenAI’s overall funding round is expected to total around $100 billion and attract contributions from Amazon, SoftBank, and Microsoft. The implied valuation of $730 billion is striking — more than double Anthropic’s recent $340 billion valuation and placing OpenAI just behind SpaceX among privately held companies globally. SoftBank, one of the most closely watched expected contributors, has nonetheless signaled publicly that final decisions remain pending.
Beneath the impressive headline numbers, OpenAI’s business faces real pressures. Its dominant position in the AI chatbot market has been eroding steadily, and it has yet to chart a clear path to profitability despite its enormous revenues. The company’s exploration of advertising as a revenue stream has attracted criticism, and its hardware strategy is in flux as it engages with chip suppliers beyond Nvidia. Whether the $730 billion valuation can be justified over time remains an open and important question.
Nvidia Takes an Ownership Stake in OpenAI With a $30 Billion Investment Deal
