Nvidia CEO says new OpenAI investment may be largest yet
Jensen Huang calls the artificial intelligence research organisation “one of the most consequential companies of our time”
[TAIPEI] Nvidia chief executive officer Jensen Huang said that the company will be participating in OpenAI’s latest funding round, describing it as potentially “the largest investment we’ve ever made”.
“We will invest a great deal of money,” Huang told reporters while visiting Taipei on Saturday (Jan 31). “I believe in OpenAI. The work that they do is incredible. They’re one of the most consequential companies of our time.”
Huang didn’t say exactly how much the company might contribute but described the investment as “huge”.
“Let (OpenAI CEO) Sam (Altman) announce how much he’s going to raise – it’s for him to decide,” Huang said, adding that Altman is in the process of closing the round. “But we will definitely participate in the next round of financing because it’s such a good investment.”
The Wall Street Journal reported on Friday that a plan that Nvidia had announced in September to invest as much as US$100 billion in OpenAI overall had stalled after some inside the chip giant expressed doubts about the deal.
Citing unidentified people familiar with the matter, the Journal reported that Huang had privately emphasised that the US$100 billion agreement was nonbinding, had privately criticised what he has described as a lack of discipline in OpenAI’s business approach and expressed concern about competition.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
When asked by a reporter in Taipei about the report that seemed to suggest he wasn’t very happy with OpenAI, Huang replied: “That’s nonsense.” Huang said that Nvidia’s contribution to OpenAI’s latest funding round wouldn’t approach US$100 billion.
Nvidia’s massive investment commitment to OpenAI, a key buyer of its advanced AI chips, has stoked concerns about the circular nature of AI deals over the past year. Investors are increasingly questioning how these partnerships – in which tech companies are investing in AI businesses that purchase their products – may be artificially propping up demand.
In a separate such deal, Nvidia recently announced plans to invest an additional US$2 billion in CoreWeave, a cloud-computing provider that’s also a key customer.
As part of a letter of intent signed in September, Nvidia said that it planned to invest as much as US$100 billion in OpenAI to support new data centres and other artificial intelligence (AI) infrastructure. The deal was designed to help OpenAI build data centers with a capacity of at least 10 gigawatts of power – equivalent to the peak electricity demand of New York City – equipped with Nvidia’s advanced chips to train and deploy AI models.
OpenAI has been seeking to raise as much as US$100 billion in its current funding round, according to a person familiar with knowledge of the matter, asking not to be identified because the discussions are private. Amazon was in talks to invest as much as US$50 billion in the fundraise and expand an agreement that involves selling computer power to the AI startup, the person added on Thursday.
Altman has also met with top investors in the Middle East to line up funding for the round, which may value the company at about US$750 billion to US$830 billion, people familiar with the matter said earlier in January, while asking not to be identified because the information isn’t public. Microsoft is in discussions to participate as well, the Information had previously reported.
Parties in talks to contribute to OpenAI’s financing round include Amazon and SoftBank Group Corp, sources have said. BLOOMBERG
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
