Nvidia CEO Jensen Huang says that the company plans on making a "huge" investment in OpenAI, the company behind ChatGPT. There were claims going around that Huang was unhappy with OpenAI, which he has denied. The deal is invest up to $100 billion dollars into ChatGPT, allowing them to finance advanced chips. This will allow Chat to remain one of the largest generative AI platforms amidst a very competitive field.
Huang says that he "believe[s] in Open AI", going even further to call their work "incredible." I don't know what Nvidia would get in return for this, but a trade deal as large as this would no doubt launch both company's stocks much higher. It is clear that Nvidia wants to remain a large factor in AI development and they are willing to pay to see the future of AI explode.
Article: https://www.cnbc.com/2026/01/31/nvidia-ceo-huang-denies-hes-unhappy-with-openai.html
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ReplyDeleteOpenAI gets a huge portion of their revenue from integrating their LLMs into other companies' networks and their ChatGPT+ subscribers. Currently, almost all of their revenue goes into the massive operating costs required to maintain and train these LLMs. Do you think that if OpenAI could reduce their maintenance and compute costs, they could have a chance at being a long lasting company? Do you also think its a good idea for Nvidia to invest so much money into OpenAI?
ReplyDeleteI think that this is huge for AI as ChatGPT is one of the biggest platforms for generative AI to this day. Having chips from one of the biggest companies in the game is bound to improve their product. Out of this, I think one of the main tings NVDA gets a new customer with tons of upside. This could be super beneficial for them to be front running chips for OpenAI.
ReplyDeleteThis shows how strategically important AI has become for major tech firms. Even if the exact return isn’t fully clear yet, securing a close relationship with a leading platform could help Nvidia to get long term demand. It also highlights how competition in the AI space is pushing companies to make massive bets.
ReplyDeleteThis move really shows how Nvidia is focused on long-term dominance in AI rather than short-term uncertainty. Investing in OpenAI directly could help lock in demand for its chips and keep them ahead of the market.
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