Nvidia Corp. (NASDAQ:NVDA) is preparing to make a substantial investment in OpenAI’s ongoing funding round, as confirmed by CEO Jensen Huang. This could potentially be the largest investment ever made by the company.
Huang confirmed Nvidia’s participation in the funding round, although the exact investment amount was not disclosed. Huang did hint that the investment would be significantly less than $100 billion.
As per the report by Bloomberg, at a press conference in Taipei, Huang expressed Nvidia’s enthusiasm about the investment, stating, “We will definitely participate in the next round of financing, because it’s such a good investment.”
In September, Nvidia and OpenAI signed a letter of intent, indicating a potential investment of up to $100 billion by Nvidia. This investment was intended to support the construction of new data centers and other AI infrastructure, using Nvidia components.
Internal Doubts at Nvidia Stall Planned Investments
However, The Wall Street Journal reported on Friday that the investment plans had hit a roadblock due to internal doubts within Nvidia. OpenAI is currently seeking to raise as much as $100 billion in its current funding round, with Amazon.com Inc. (NASDAQ:AMZN) also in discussions to invest up to $50 billion.
Nvidia’s potential investment in OpenAI represents a significant step in the company’s ongoing commitment to advancing AI technology.
The investment, if it goes through, could potentially bolster Nvidia’s position in the AI market, while providing OpenAI with the necessary funds to further its AI research and development efforts.
However, according to the outlet, the reported internal doubts within Nvidia could pose a challenge to the investment plans.
The outcome of these discussions could have a significant impact on both Nvidia and OpenAI’s future strategies and operations.
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