Home / Business and Economy / Huang: OpenAI $100B investment unlikely
Huang: OpenAI $100B investment unlikely
5 Mar
Summary
- Nvidia CEO Jensen Huang stated a $100 billion OpenAI investment is unlikely.
- Nvidia recently invested $30 billion in OpenAI's funding round.
- Huang argues AI computing deployment is already profitable.
Nvidia Chief Executive Officer Jensen Huang recently stated that the company's planned $100 billion investment in OpenAI is likely not going to happen. Speaking at a conference in San Francisco, Huang cited OpenAI's potential public offering by the end of the year as a factor. He referred to this opportunity as possibly the last chance to invest in a company of such significance.
Nvidia had previously committed $30 billion to a substantial funding round for OpenAI, which valued the AI firm at $730 billion. This investment was the largest single bet by the chipmaker on a startup to date, though it fell short of the $100 billion previously under consideration. Huang also mentioned that Nvidia's recent $10 billion investment in Anthropic, an OpenAI competitor, was probably its final one in that company, as Anthropic is also preparing for an IPO.
Addressing investor concerns about a potential AI bubble, Huang reiterated his stance that AI computing deployment is already yielding profitable revenues. He highlighted data center operators like Microsoft, suggesting they would grow even faster with more computing power. Huang also expressed optimism for companies like Cadence Design Systems and Synopsys, foreseeing significant future growth. He concluded by touting Nvidia's record-breaking financial results, emphasizing that the industry is at the start of a major growth phase.
