Nvidia Hits $180 Low as $20 Billion OpenAI Round Investment Report Sparks Volatility
NVIDIA is close to reaching an agreement to invest $20 billion in OpenAI as part of its most recent funding round.
Quick overview
- NVIDIA is nearing a $20 billion investment in OpenAI, marking its largest investment in the ChatGPT developer.
- OpenAI is aiming to raise $100 billion in its latest funding round, with significant contributions from major tech companies.
- Despite recent tensions between NVIDIA and OpenAI, both companies' CEOs reaffirmed their commitment to collaboration.
- NVIDIA's CEO stated that the investment could potentially be the largest the company has ever made.
NVDA closed at $180.34, down almost 4%, it opened at $186.24 after hitting a low of $176.23 during the day. It fell even further to about $179 during after-hours trading. This decline is a result of volatility related to reports about Nvidia’s participation in OpenAI’s massive funding round.
NVIDIA is close to reaching an agreement to invest $20 billion in OpenAI as part of its most recent funding round. This would be the chipmaker’s largest investment in the ChatGPT developer.
According to the people who spoke on condition of anonymity because the information is confidential, Nvidia’s contribution is almost finished.
The terms of the agreement are subject to change and are not final. According to Bloomberg News, OpenAI is seeking to raise to $100 billion for a new round of funding, with a significant portion coming from big tech companies. Amazon. Com, Inc. has discussed investing up to $50 billion, and SoftBank. has discussed investing up to $30 billion.
NVIDIA may invest up to $20 billion, according to earlier reports from The Financial Times. Despite being key players in the AI boom, Nvidia and OpenAI’s relationship has recently come under increased scrutiny due to reports of tensions between the two companies. The Wall Street Journal published an article about it.
NVIDIA and OpenAI have been linchpins of the AI boom, but their relationship has come under new scrutiny in recent days amid reports of tensions between the two firms. The Wall Street Journal reported on Friday that a plan that Nvidia announced in September to invest as much as $100 billion in OpenAI overall had stalled after some inside the chip giant expressed doubts about the deal.
The chief executives of both companies have since publicly said they remain committed to working together. “We will definitely participate in the next round of financing because it’s such a good investment,” Nvidia CEO Jensen Huang told reporters while visiting Taipei on Saturday. He added that it would potentially be “the largest investment we’ve ever made.
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