Nvidia-OpenAI inch closer to a new $30 billion investment plan, dump $100 billion deal

As the AI race intensifies further, two of the biggest names in the business, arguably the poster boys of the Artificial Intelligence paradigm, Nvidia and OpenAI, are close to arriving at a new investment deal. This deal, as per a Financial Times report, is worth $30 billion.

This new deal means that the tech companies will abdicate the previous $100 billion deal, which was announced in September last year.

According to the terms of the $100 billion deal, Nvidia would have received a sizeable ownership in the AI start-up in exchange for ten $10 billion investments over many years as OpenAI's need for processing power increased.

As part of its intentions to roll out up to 10 gigawatts of additional computing capacity, OpenAI in turn intended to purchase millions of Nvidia's AI processors.

The $30 billion equity investment is a component of a bigger capital transaction that is expected to generate around $100 billion and, excluding the fresh funding, will value the ChatGPT creator at $730 billion, according to the sources.

A large portion of OpenAI's fresh funding will be reinvested in Nvidia hardware, although the businesses will not

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The individuals stated that they would move forward with the $100 billion multiyear investment agreement that they had announced in September.
The withdrawal from the deal, which was launched with great fanfare in September, coincides with investor concerns about the state of the AI industry, which has contributed to a 17% decline in US tech stocks since the year began.

This development comes amid murmurs of a dispute between Altman and Huang.

As a result of this, Jensen Huang, the CEO of Nvidia, and Altman have attempted to refute rumours that their firms are at odds. "Nvidia produces the best AI chips in the world, and we love working with them." Earlier this month, Altman stated on X, "We hope to be a huge customer for a very long time."

When it comes to the investment, OpenAI is expected to use the investment money to build up gigawatts of new processing capacity and will likely be followed by more agreements in the future.