Sipu Jha
OpenAI is now back on track to raise more than $100 billion in a record-breaking funding round, but it previously announced $100 billion partnership with Nvidia has been scaled back. As reported by Financial Times, Nvidia is now preparing a $30 billion equity investment in OpenAI. Last year, both Nvidia and OpenAI revealed their plan in which the chipset maker would invest $100 billion over several years, tied to OpenAI’s growing demand for computing power. However, the deal never progressed beyond a memorandum of understanding and has now been replaced by a more straightforward arrangement: Nvidia will invest up to $30 billion in exchange for OpenAI stock.This retreat reflects investor concerns about the health of the AI sector, which has driven US tech stocks down by 17% since the start of 2026. Analysts say that the circular nature of deals where suppliers, customers and investors are tightly intertwined has filed worries of an AI bubble.
OpenAI’s expanding war chest
The new funding round, expected to value OpenAI at $730 billion before new capital, includes major commitments from other investors:
- SoftBank is negotiating a $30 billion investment.
- Amazon could invest up to $50 billion as part of a broader partnership.
- MGX, Abu Dhabi’s state-backed tech fund, and Microsoft are also expected to contribute billions.
OpenAI has told investors it plans to spend about $600 billion on computing resources between now and 2030, including hardware from Nvidia, Amazon, and Microsoft.
Nvidia and OpenAI relationship
Despite speculation of cooling ties, both companies have publicly reaffirmed their partnership. OpenAI CEO Sam Altman recently wrote: “We love working with Nvidia and they make the best AI chips in the world. We hope to be a gigantic customer for a very long time.” Nvidia CEO Jensen Huang echoed the sentiment, dismissing talk of controversy as “nonsense.”
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