Nvidia And OpenAI Move Towards New $30 Billion Investment Agreement

The artificial intelligence sector is witnessing another major shift as Nvidia and OpenAI move closer to formalising a $30 billion investment arrangement. The development follows reports indicating that the companies will withdraw from their earlier $100 billion agreement announced in September last year.

The revised deal reflects a substantial change in structure, with the new funding designed to support OpenAI's rapidly expanding compute requirements. The update comes at a time when AI infrastructure spending is rising sharply across the industry, and both firms continue to strengthen their operational links.

Revised Investment Framework Replaces Earlier Agreement

According to the Financial Times report, the new $30 billion deal will supersede the initial $100 billion partnership outlined in September. The original agreement involved Nvidia receiving significant equity in OpenAI in return for ten separate $10 billion investments over multiple years.

That structure was tied to OpenAI’s growing demand for processing power, which was expected to accelerate as AI model training expanded. The revised plan removes the earlier milestone-based structure and instead focuses on a direct equity investment approach.

Company Background and Operational Collaboration

Nvidia has long been positioned as a leading global supplier of AI processors, powering data centres and advanced model development across industries. OpenAI, the creator of ChatGPT, has become one of the most prominent AI start-ups, relying heavily on large-scale computing to support its research and product advancements.

Both companies have collaborated extensively in recent years, strengthening their commercial relationship through hardware purchases and capacity expansion plans. Their partnership reflects the wider trend of tight integration between chipmakers and AI developers amid rising compute demands.

Financial Structure and Capital Deployment

The $30 billion equity investment forms part of a much larger capital transaction that is expected to raise around $100 billion. Excluding the new funding, the deal will value OpenAI at approximately $730 billion.

A major portion of OpenAI’s newly raised capital will be directed towards expanding its computing infrastructure using Nvidia hardware. This includes purchases of millions of AI processors required for the company’s planned roll-out of up to 10 gigawatts of additional compute capacity.

Market Response and Operational Implications

The companies will not proceed with their previously announced $100 billion multi-year investment agreement under the new structure. The shift comes against a backdrop of rising investor caution within the broader technology sector, which has experienced a 17% decline in the United States since the beginning of the year.

Public comments from OpenAI CEO Sam Altman and Nvidia CEO Jensen Huang have sought to dismiss speculation about disagreements between the firms. OpenAI is expected to continue expanding its infrastructure footprint following the investment, indicating that further agreements may follow in the future.

Read More: ePlane Collaborates with Nvidia to Build India’s First Electric Air Taxi.

Conclusion

Nvidia and OpenAI’s move towards a revised $30 billion investment deal marks a significant recalibration of their collaboration. The new structure replaces a more complex multi-year plan announced in 2025, simplifying the investment framework while maintaining strategic alignment between the companies.

With OpenAI set to reinvest heavily in Nvidia hardware, the deal reinforces the central role of compute infrastructure in AI growth. The development also highlights the continuing shift in funding patterns within the global artificial intelligence landscape.

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