Nvidia to Invest in OpenAI’s Funding Round
Nvidia CEO Jensen Huang announced at an event in Taipei that the company plans to participate in OpenAI’s latest funding round, potentially valued at $750 billion. This investment could make it “the largest investment we’ve ever made,” although Huang did not specify the exact amount but described it as “huge.” OpenAI is seeking to raise as much as $100 billion from various investors, including Nvidia, Microsoft, Amazon, and SoftBank.
Nvidia previously entered a strategic partnership with OpenAI to supply its Vera Rubin GPUs for building AI data centers, committing up to $100 billion as the project’s ten-gigawatt capacity is developed. Despite recent reports suggesting Nvidia might reconsider the investment size, Huang dismissed concerns as “nonsense.” As of now, Nvidia’s PEG ratio stands at 0.8, suggesting it may be undervalued amidst its growing interest in AI.
