Nvidia’s next big AI investment

Though the immense scale – and apparently circular nature – of the various artificial intelligence (AI) investments, spearheaded by Nvidia (NASDAQ: NVDA), drew much attention in late 2025, the chipmaker’s apparent reneging on its $100 billion deal with OpenAI shifted the narrative in early 2026.

By press time on February 20, a new development again promises to change the situation as the semiconductor giant led by Jensen Huang is reportedly finalizing its new major investment in the cutting-edge technology.

Nvidia to invest $30 billion in OpenAI at $830 billion valuation

Specifically, Nvidia is in the final stages of making an agreement with OpenAI that would see the blue-chip chipmaker inject $30 billion into the AI firm, per a February 19 Reuters report citing unnamed sources.

The ongoing investment drive is part of Sam Altman’s firm’s drive to complete a $100 billion funding round. The effort not only allegedly involves SoftBank and Amazon (NASDAQ: AMZN), but would also see OpenAI’s valuation skyrocket to an unprecedented $830 billion.

While raising $100 billion from multiple sources is no small feat, it could also be a troubling development for AI enthusiasts since, in September 2025, it appeared like the private company would get the same amount from only one source.

Similarly, investors concerned about the previous apparently circular nature of big tech deals will allegedly not get much of a reprieve since much of the $30 billion is earmarked for purchasing Nvidia chips.

Could the $30 billion deal push the AI bubble over the edge?

Multiple observers noted late last year that most of the investments amount to the semiconductor giant pledging a vast amount of money to a company that would then use it to purchase hardware from Nvidia.

OpenAI’s latest $100 billion fundraising round could also prove pivotal for the company, considering that the firm’s own projections, reportedly, forecast a $14 billion loss in 2026, signaling the company is set to continue operating at a significant loss.

Some critics have interpreted such a continued state of affairs as a sign that the AI bubble very much remains at play and that the demand the billion-dollar agreements are meant to meet simply does’t exist. 

Public perception of the industry was further damaged in 2026, at least among gamers and similar tech enthusiasts, by OpenAI’s hoarding of memory, which has led RAM prices to rapidly and drastically increase amidst a shortage dubbed the ‘RAMaggedon.”

Why Nvidia’s $30 billion investment in OpenAI could pay off

Despite the risks, reports that Nvidia is nearing the final agreement to invest $30 billion in Sam Altman’s company signal continued institutional confidence in the industry. 

Indeed, along with forecasting a $14 billion loss in 2026, OpenAI appears to also be anticipating a skyrocketing of revenue by 2029 to a staggering $100 billion.

Such a figure is only slightly lower than Nvidia’s in 2025. At press time on February 20, 2026, the semiconductor giant is the world’s largest company with a market capitalization of nearly $4.6 trillion – some $700 billion more than the second-biggest firm, Apple (NASDAQ: AAPL).

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