Nvidia and OpenAI are close to finalizing a $30 billion investment in the AI startup, significantly less than the $100 billion long-term commitment initially pledged in 2025, according to the Financial Times. The investment is part of a massive $100 billion funding round that would value OpenAI at $830 billion after investment. The deal comes after Nvidia scaled back its original commitment, which had sparked market volatility and concerns about the AI sector's long-term health.

Negotiations between the two companies are in their final stages, with the investment potentially completed as early as this weekend. OpenAI plans to reinvest much of its new capital into Nvidia hardware, reinforcing the symbiotic relationship between the chipmaker and the AI developer. The scaled-back investment follows a period of market turbulence triggered by Nvidia's backpedaling from its initial pledge, which had raised fears about the AI sector's cash burn rate and sustainability.

The deal underscores the complex dynamics in the AI industry, where Nvidia serves as both a critical supplier and major investor to its largest customers. OpenAI is also in talks with other major players including SoftBank, Amazon, Microsoft, and MGX to raise additional funds. The investment round comes as OpenAI targets an IPO by late 2026 to address its massive operational costs and fund continued development of its advanced AI models.