Nvidia Approaches Landmark $20 Billion Investment in OpenAI's Latest Funding Round

News Summary

Nvidia Corporation is reportedly nearing completion of a landmark $20 billion investment in OpenAI as part of the artificial intelligence company's latest funding round, marking what could be the chipmaker's largest single investment to date. The development comes as OpenAI seeks to raise up to $100 billion in fresh funding to maintain its competitive edge in the rapidly evolving AI landscape.

Breaking: Nvidia Prepares Historic $20 Billion OpenAI Investment

Deal Structure and Timeline

According to sources familiar with the matter, Nvidia's contribution is close to being completed, though the agreement remains non-final and terms could still undergo modifications. The investment represents a significant escalation from previous discussions and underscores Nvidia's strategic commitment to strengthening its position in the artificial intelligence ecosystem.

CEO Confirms Major Investment Plans

Nvidia CEO Jensen Huang recently confirmed the company's participation in OpenAI's funding round during a visit to Taipei on Saturday (EST). Huang described the investment as potentially "the largest investment we've ever made" and called it "huge", while expressing strong confidence in OpenAI's capabilities and market position.

"I believe in OpenAI. The work that they do is incredible. They're one of the most consequential companies of our time," Huang stated during the Saturday press conference.

Broader Funding Round Context

The proposed Nvidia investment is part of OpenAI's ambitious effort to secure up to $100 billion in new funding. Other major technology companies are also participating in this funding round, with Amazon reportedly discussing an investment of up to $50 billion, while SoftBank Group has held talks to invest as much as $30 billion.

Partnership Dynamics and Market Response

The investment announcement comes amid recent speculation about potential strains in the Nvidia-OpenAI relationship. Last week, reports suggested that Nvidia's previously announced plan to invest up to $100 billion in OpenAI had encountered internal resistance. However, both Huang and OpenAI CEO Sam Altman have pushed back on these reports, with Huang calling suggestions of his dissatisfaction with OpenAI "nonsense".

Strategic Implications

This investment aligns with Nvidia's broader strategy to expand its influence in the artificial intelligence sector beyond its core GPU manufacturing business. The partnership provides OpenAI with crucial access to Nvidia's advanced chip technology, which is essential for training and running large language models that power ChatGPT and other AI applications.

Market Impact

During Tuesday's regular trading session, Nvidia shares closed down 2.84% at $180.34 and declined an additional 0.58% to $179.30 in after-hours trading. Despite the short-term price movement, analysts maintain a positive outlook on the stock, with institutional ownership remaining strong at approximately 67%.

Industry Context

The investment underscores the intensifying competition in the artificial intelligence space, where companies are making unprecedented financial commitments to secure technological advantages. OpenAI faces increasing competition from rivals including Google's AI initiatives and Anthropic, making this funding round crucial for maintaining its market leadership.

Financial Considerations

With Nvidia's market capitalization standing at approximately $4.38 trillion, the $20 billion investment represents a significant but manageable commitment for the semiconductor giant. The company's robust financial health, demonstrated by strong revenue growth and profitability metrics, supports its ability to make such substantial strategic investments.

Looking Ahead

The completion of this investment, once finalized, will likely strengthen the already close technological partnership between Nvidia and OpenAI. This relationship has been central to both companies' growth in the AI boom, with Nvidia providing the computational infrastructure that enables OpenAI's breakthrough artificial intelligence applications.

The deal's finalization is expected to be closely watched by industry observers as a barometer of confidence in artificial intelligence investments and the continued growth trajectory of the sector.

This report is based on information available as of Tuesday, February 3, 2026 (EST), and will be updated as new developments emerge.