OpenAI in talks to raise $40bn in investments from Nvidia, Amazon and Microsoft

Summarize this content to 100 words: Unlock the Editor’s Digest for freeRoula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.OpenAI is in talks to raise close to $40bn from Nvidia, Microsoft and Amazon, three of its largest infrastructure providers, as part of its blockbuster $100bn funding round.Nvidia could invest as much as $20bn in the ChatGPT maker as part of its next funding round, while Amazon has discussed investing $10bn or more, according to people familiar with the matter. Microsoft, which owns a 27 per cent stake in OpenAI, could invest several billion dollars more, the people added. The commitments would form part of a new funding round in which Sam Altman’s start-up is trying to raise as much as $100bn at a valuation of $750bn to fund its expansion, for which it needs huge amounts of expensive data centre capacity. The large investments from the same tech giants that sell OpenAI the chips and data centre capacity it needs to train and run AI models will intensify concerns among some analysts about the lossmaking start-up’s circular financial arrangements.Altman is also close to securing an additional $30bn from SoftBank for the new funding round, as Japanese billionaire Masayoshi Son raises his bet on the leading AI model builder.OpenAI is also in talks with sovereign wealth investors including the Abu Dhabi Investment Authority and MGX.However, the people familiar with the situation cautioned that was not clear if all of the parties would invest, or if the start-up would achieve its $100bn target. Nvidia last year struck a multiyear deal with OpenAI to invest $100bn in $10bn increments as the start-up brought tranches of data centre capacity online. However, that agreement has yet to be sealed.A $20bn cheque from Nvidia for OpenAI’s funding round could be in addition to the $100bn deal, or could lead the two companies to adjust the terms, the people said.RecommendedOpenAI also has a $38bn, seven-year deal with Amazon to use its AWS could infrastructure. The new investment could form part of a wider deal with Amazon for access to OpenAI’s technology.Microsoft was one of OpenAI’s early backers and is the largest shareholder in the AI group’s for-profit business after they restructured their relationship last year. Amazon and OpenAI declined to comment. Nvidia and Microsoft did not respond to requests for comment. The Information first reported certain details of the talks between OpenAI and the three companies.Additional reporting by Stephen Morris, Rafe Rosner-Uddin and Michael Acton



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