Nvidia to Invest $30Bn in OpenAI, Previous $100Bn Partnership Plan Scrapped

AI start-up OpenAI is set to raise $30 billion from Nvidia as part of a $100 billion funding round that would value the ChatGPT-maker at around $830 billion, Reuters reported.

The round would reportedly be one of the largest private capital raises on record and, as per Reuters’ earlier report, SoftBank and Amazon might also participate.

This fresh funding by Nvidia will replace its earlier commitment announced in September where the AI chip maker was supposed to invest up to $100 billion to support OpenAI's use of its chips in data centers, FT reported.

OpenAI-Nvidia $100Bn Commitment

Nvidia and OpenAI had previously signed a letter of intent under which Nvidia may invest as much as $100 billion to support new data centres and related AI infrastructure for the maker of ChatGPT.

The multibillion-dollar arrangement, structured as staged investments tied to deployed computing capacity, was supposed to support the construction of at least 10 gigawatts of data-centre power and make Nvidia both a supplier and a major financial backer of one of the industry’s most important AI firms.

An initial $10 billion was to be provided upon signing, with subsequent tranches released as each gigawatt of deployment was achieved. This phased approach ties the flow of funds directly to the pace of infrastructure expansion.

At its core, the partnership was designed to supercharge computing power. It planned on deploying the equivalent of four–five million Nvidia AI chips across the new facilities, with deliveries that were supposed to begin as early as late 2026 on Nvidia’s next-generation platform.

OpenAI for India

OpenAI’s funding announcement comes amid its plans to expand in India. The ChatGPT-maker recently announced opening of two new offices in Bengaluru and Mumbai.

The move is part of the company’s initiative: ‘OpenAI for India,’ that aims to expand access to AI, strengthen sovereign AI capabilities, and accelerate enterprise and workforce transformation across the country.

Simultaneously, OpenAI is set to become the first customer of Tata Consultancy Services’ (TCS) data centre business under a multi-dimensional strategic partnership.

The collaboration will begin with 100 megawatts of capacity, with potential to scale up to 1 gigawatt over time as part of OpenAI’s global Stargate initiative.

OpenAI and Tata Group also announced a strategic enterprise collaboration to accelerate AI-native transformation at global scale. Tata Group plans to deploy ChatGPT Enterprise across its employees over the next several years, starting with hundreds of thousands of TCS employees, making it one of the largest enterprise AI deployments in the world. TCS also intends to use OpenAI’s Codex to standardize AI-native software development across teams.