Nvidia is almost done finalizing a $20 billion deal to invest in OpenAI

Nvidia is almost done finalizing a $20 billion deal to invest in OpenAI, making it the biggest single investment the chipmaker has ever made.

The money will be part of OpenAI’s ongoing funding round, which could pull in up to $100 billion. People close to the deal say it’s nearly done, but not signed yet. Terms might still change.

OpenAI’s target is huge, and they’ve been talking to several tech giants. According to Bloomberg, Amazon has discussed putting in as much as $50 billion, and SoftBank has talked about throwing in $30 billion.

Nvidia’s $20 billion is now back in the headlines after some drama over whether the relationship between the two companies was falling apart. It’s not.

Huang and Altman respond to $100B freeze story

On Friday, the Wall Street Journal reported that Nvidia’s original $100 billion plan, announced in September, had stalled. People inside Nvidia were said to be unsure about the size and strategy of that deal. That freeze led to speculation that Nvidia and OpenAI were no longer on the same page.

But both companies have now responded publicly. Nvidia CEO Jensen Huang, while speaking in Taipei on Saturday, said, “We will definitely participate in the next round of financing because it’s such a good investment.” He added that this could be “the largest investment we’ve ever made.”

Then on Tuesday, Huang told CNBC’s Jim Cramer, “There’s no drama involved,” and confirmed, “Everything’s on track.”

Despite those comments, Nvidia’s stock still dropped more than 3.4% on Tuesday. The WSJ article had said the $100 billion deal was “on ice,” but that hasn’t stopped this $20 billion round from moving forward.

Meanwhile, OpenAI CEO Sam Altman jumped in to shut down the rumors, too. He posted on X yesterday: “We love working with NVIDIA and they make the best AI chips in the world. We hope to be a gigantic customer for a very long time. I don’t get where all this insanity is coming from.”