Nvidia-OpenAI Friction Fading? AI Chipmaker Reportedly Nears $20B Investment In OpenAI Fundraise

• Nvidia is close to finalizing the investment as part of OpenAI’s up to $100 billion round.
• “There’s no drama involved. Everything’s on track,” Nvidia CEO Jensen Huang said.
• Nvidia shares declined in the last two days, partly weighed by the uncertainty over its partnership with the ChatGPT maker.

Nvidia Corp. is nearing a deal to invest $20 billion in OpenAI, as part of the latter’s up to $100 billion funding round currently in the works, Bloomberg News reported on Tuesday, citing people familiar with the matter.

The report puts to rest speculation of extreme tensions between the two companies at the centre of the artificial intelligence boom. Reports over the past week said that a September deal between Nvidia and OpenAI, under which the chipmaker was expected to invest up to $100 billion and supply OpenAI with advanced chips, had been stalled. 

It was also reported that Nvidia executives were upset with certain OpenAI practices, while OpenAI raised concerns about the quality of Nvidia chips.

Even though Nvidia CEO Jensen Huang and OpenAI CEO Sam Altman said the relationship between the two companies remains intact, Nvidia shares slid nearly 3% on Monday following the initial round of reports. NVDA dropped by a similar measure on Tuesday, amid a broad selloff in software stocks.

Altman called the speculations of a rift “insanity,” while Huang told CNBC: “There’s no drama involved. Everything’s on track.”

Final terms of Nvidia’s investment have yet to be finalized, according to the Bloomberg report. Amazon is eying an investment of up to $50 billion, and SoftBank is considering putting in another $30 billion, the news agency reported earlier.

On Stocktwits, retail sentiment for NVDA remained ‘neutral,’ largely unchanged over the past week, with members upbeat after Huang’s reassurance. 

“$NVDA This is the dip you want to bite into,” said a user.

Nvidia shares dropped 0.7% lower in Tuesday’s after-market session. They are down 3.3% for the year as of their last close.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on