Nvidia is finalizing a $30 billion equity investment in OpenAI, a significant reduction from a previously announced $100 billion multi-year partnership plan. According to reports from the Financial Times and other sources, the deal is part of OpenAI's latest funding round, which is expected to value the AI company at approximately $830 billion.
The revised structure marks a strategic shift. Instead of a massive, long-term supply-linked commitment, Nvidia will take a direct equity stake. This change reduces Nvidia's financial risk exposure while still securing its position as OpenAI's primary hardware provider, as OpenAI is expected to reinvest much of the raised capital into AI infrastructure, including Nvidia's GPUs.
The funding round itself is targeting over $100 billion from multiple strategic backers. Other participants in discussions include SoftBank Group, Amazon, and Microsoft. The round is poised to be one of the largest private capital raises on record.
The news comes after a period of volatility for Nvidia's stock (NVDA), which fell to a six-week low around $177 in early February. The decline was attributed to uncertainty over the original $100 billion deal, concerns about US export restrictions on AI chips to China, and broader investor anxiety over AI spending sustainability. The announcement of the smaller, clarified $30 billion commitment, alongside other partnerships like a major chip supply deal with Meta, helped the stock rebound toward the high-$180 range by mid-February.
Analysts view the finalized deal as strategically bullish for Nvidia in the long term. It removes the potential balance sheet strain of the $100 billion plan, provides equity exposure to a leading AI firm, and locks in demand for its hardware. The deal underscores the accelerating integration and capital alignment between AI chip suppliers, cloud providers, and model developers.
