Nvidia Pivots From Chips to Stocks: The $30 Billion OpenAI Investment Explained

In a pivotal shift that underscores the evolving dynamics of the artificial intelligence economy, Nvidia is reportedly planning to invest $30 billion in OpenAI — this time in exchange for equity rather than chip purchase agreements. The move represents a clean break from a controversial $100 billion deal that dissolved earlier this month amid questions about its true nature and long-term viability.
The original arrangement, unveiled with great fanfare last September, was essentially a circular transaction: Nvidia would give OpenAI money, and OpenAI would use that money to buy Nvidia’s graphics processing units. While the deal temporarily sent Nvidia’s market capitalization soaring past $5 trillion, financial analysts quickly raised concerns about what such a transaction actually meant for the health of either company. When reports emerged that the commitment was never firm, markets reacted with volatility.
Now the two companies appear to be starting fresh. The new $30 billion investment gives Nvidia genuine ownership stake in one of the world’s most talked-about AI companies, without any requirement for OpenAI to funnel that money back into Nvidia products. It is a cleaner, more conventional investment structure that speaks to Nvidia’s long-term confidence in OpenAI’s prospects.
OpenAI’s valuation in this upcoming round is expected to hit $730 billion — a figure that places it in rarefied company among privately held firms globally. The full fundraising effort is reported to target $100 billion, with SoftBank, Amazon, and Microsoft all expected to participate. However, SoftBank executives have been publicly cautious, telling investors that no final decisions have been made about the scale of their commitment.
The financial picture for OpenAI remains complex. Its share of the AI chatbot market has declined significantly over the past year, slipping from above 86% to around 64%, with rivals like Anthropic gaining meaningful ground particularly in enterprise markets. OpenAI is now experimenting with advertising to boost revenues, a move that drew pointed criticism from Anthropic. Nvidia’s investment may provide breathing room, but the underlying business challenges are very real.