Nvidia and OpenAI abandon unfinished $100bn deal in favour of $30bn investment - FT

Nvidia and OpenAI abandon unfinished $100bn deal in favour of $30bn investment - FT

Nvidia and OpenAI Abandon Unfinished $100 Billion Deal in Favor of $30 Billion Investment—FT

Nvidia is nearing finalization of a $30 billion equity investment into OpenAI, replacing the previously announced $100 billion multiyear partnership between the two companies, according to sources familiar with the matter. The revised agreement, part of a broader funding round for the artificial intelligence startup, could be concluded as early as this weekend. The new investment values OpenAI at approximately $730 billion, excluding the proceeds from the funding round, which is expected to raise over $100 billion.

The decision marks a significant scaling back of the ambitious partnership announced in September 2024, when both parties pledged a long-term collaboration to advance AI development. OpenAI will reinvest much of its newly raised capital into Nvidia hardware, maintaining a critical supply relationship. However, the companies will not proceed with the original $100 billion multiyear funding commitment.

The shift reflects growing investor caution in the AI sector. U.S. tech stocks have declined by 17% since the start of 2026, raising concerns about the sustainability of rapid AI-driven growth. A January report indicated OpenAI had aimed to secure up to $100 billion in its latest funding round, valuing the company at roughly $830 billion. The updated $30 billion deal suggests a recalibration amid evolving market dynamics.

Nvidia, the world's most valuable company, has not publicly commented on the negotiations. OpenAI's funding round underscores the intense competition and capital demands in the AI industry, as startups and tech giants navigate shifting investor sentiment. The outcome of this deal could influence future partnerships in the sector, particularly as concerns about AI's commercial viability persist.

Financial Times
Reuters via Marketscreener