Nvidia plans to invest in OpenAI’s funding round, potentially valuing the company at $750 billion. This follows a partnership where Nvidia supplies Vera Rubin GPUs to OpenAI for its AI-centric data centers. The investment aligns with Nvidia’s focus on the AI space. CEO Jensen Huang expressed confidence in OpenAI’s work, hinting at a significant investment.

OpenAI is in discussions to raise up to $100 billion from investors, including Nvidia, Microsoft, Amazon, and SoftBank. This funding could value OpenAI at $750 billion, making it a top private company globally. Reports of a potential $100 billion deal with Nvidia were met with denials from CEO Huang, dismissing concerns of the investment being nonbinding.

Investors are wary of the circular nature of AI deals like the one between OpenAI and Nvidia, where the former uses GPUs for data centers and the latter invests up to $100 billion. OpenAI’s potential IPO later this year has generated interest, with tech stocks like Nvidia showing promise. Nvidia’s current PEG ratio suggests it’s undervalued, making it an attractive investment opportunity.

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