For all the drama surrounding the collapse of a $100 billion circular deal, what follows is arguably more interesting: a clean, substantive $30 billion equity investment that reflects how large technology companies are learning to invest in AI more responsibly. Nvidia’s revised bet on OpenAI is smaller in headline number but bigger in credibility.
OpenAI is raising approximately $100 billion in its next round, achieving a $730 billion valuation that places it among the world’s most valuable private companies. Other investors in the round include Amazon, SoftBank, and Microsoft — a list that reflects both the strategic importance and the perceived staying power of the world’s most recognizable AI brand.
The previous deal, announced with considerable fanfare last September, proved to be more symbol than substance. Nvidia would give OpenAI capital; OpenAI would use it to buy Nvidia chips. Critics immediately identified the circular logic, and it was only a matter of time before the arrangement was subjected to harder scrutiny. That scrutiny arrived this month, when reports confirmed the deal was never binding and OpenAI had already been exploring chip alternatives.
What followed was a reorganization of OpenAI’s hardware strategy. Deals with AMD and Broadcom emerged publicly, signaling that the company was actively working to diversify away from Nvidia. Against that backdrop, Nvidia’s choice to invest $30 billion purely for equity — rather than walking away or demanding chip exclusivity — is a notable strategic move.
OpenAI still has much to prove. Its leading market position in AI assistants has eroded significantly, Anthropic is gaining in enterprise markets, and its experimental advertising strategy has attracted public criticism from competitors. Whether the company can grow into a $730 billion valuation without resolving these challenges remains the most important open question in the AI industry today.