Even as uncertainty pervades the global markets for AI products and services, Nvidia is reportedly moving to make one of the largest single equity investments in AI history, committing $30 billion for a stake in OpenAI. The move follows the collapse of an earlier $100 billion deal and reflects Nvidia’s determination to maintain a direct financial stake in the AI company that helped make its chips essential to the world.
The backstory here matters. Nvidia had previously announced a massive investment commitment to OpenAI in which the structure of the deal — involving chip purchase commitments — made it effectively circular. When that arrangement was revealed to have been non-binding, and when OpenAI began exploring chip alternatives, the deal evaporated. Markets were shaken, and the episode raised broader questions about the nature of some AI industry investment announcements.
The new $30 billion deal addresses those concerns head-on. It is an equity investment: Nvidia pays money, receives shares, and OpenAI spends that money however it sees fit. There is no obligation to route funds back toward Nvidia hardware, no circularity, and no ambiguity. The deal is as simple and transparent as a deal of this scale can be, and that simplicity is itself significant.
OpenAI is simultaneously dealing with market pressures that complicate its impressive headline valuation. The company’s share of the AI chatbot market has declined meaningfully — from above 86% to approximately 64% — over the past year, as Anthropic and other competitors have made gains. OpenAI has responded by experimenting with advertising, but this approach is controversial and its contribution to long-term profitability is unclear. The company’s chip procurement strategy is also in flux, with AMD and Broadcom partnerships adding complexity.
A total of around $100 billion is expected to be raised in OpenAI’s current round, with SoftBank, Microsoft, and Amazon among the other anticipated investors. The expected $730 billion valuation is remarkable, though not universally accepted as reflecting the company’s near-term fundamental value. Nvidia’s $30 billion contribution is a powerful expression of faith in that valuation — and in the AI industry’s long-term commercial prospects.